New Delhi: Ahead of assembly elections in Bihar, the Income Tax Department has intensified its enforcement operations in the state. Income Tax officers on Monday raided the places linked to two government contractors in Purnea, Katihar and Saharsa and a silk trader in Bhagalpur district, ministry of finance said in a statement on Wednesday.
“The searches were based on intelligence gathered, which indicated that large scale unaccounted cash was being generated and used for various purposes,” the ministry said.
Finance ministry officials said the contractors were making bogus claims of labour, transportation and fuel expenses, which were found to be not supported by any document.
Officials said these contractors have also been found to be withdrawing money in cash from the bank accounts of fictitious parties.
“Incriminating documents including signed blank cheques have been seized during the searches,” officials said.
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While elaborating on the modus operandi of these contractors, officials said that in some cases, the liabilities were shown to be continuing in the books of accounts for bogus expenses.
“They were also maintaining undisclosed bank accounts, in which unaccounted cash was being deposited which was used for making fixed deposits, which in turn were pledged to Government departments as security for getting contracts,” officials said.
Officials said these contractors could not explain the purpose of these cash withdrawals. The transactions in the undisclosed bank accounts are being examined.
“During the search, unaccounted cash, fixed deposits and bullion of more than Rs 2.40 crore have been seized,” said the ministry.
Silk trader concealed income worth Rs 10 crore Income tax officials also raided a silk trader in Bhagalpur district and recovered unaccounted stock from the places linked to him.
“Evidences indicating suppression of income of about Rs. 10 crore, alongwith documents showing large unaccounted investments in immovable properties have been found and seized,” officials said.
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These properties are in the process of being valued and attached.
“Further investigations are in progress,” said the ministry.
(Reported by ETV Bharat's Deputy News Editor, Krishnanand Tripathi)
