Income Tax Raid | Income Tax Department conducts searches in Karnataka, Andhra Pradesh and Telangana State region, Seizes unaccounted cash Rs 94 crore, gold and diamond jewellery over Rs 8 crore, aggregating to Rs 102 crore

As per CBDT Press Release, A large number of incriminating evidences in the form of loose sheets, hard copy of documents and digital data have been found and seized. The modus-operandi of tax evasion detected indicates that these contractors were involved in reducing their income by inflation of expenses by booking bogus purchases, non-genuine claim of expenses with sub-contractors and claiming ineligible expenses. The irregularities detected in utilization of contract receipts, has resulted in generation of huge unaccounted cash and creation of undisclosed assets.

Evidence indicating inflation of expenses in the form of discrepancies in Goods Receipt Note (GRN) validation have been unearthed during the search. Evidences of huge discrepancies in documentation related to purchases booked and actual physical transport of goods have also been unearthed, with regard to bogus transactions with sub-contractors, some of whom were also covered during the search. Further, these contractors were also involved in booking expenses for non-business purposes. Evidences of claim of liaison expenses have also been found and seized.