The raids conducted by the Income Tax department at 47 premises spread across four states on civil contractors have resulted in the detection of undisclosed income of above 750 crore rupees. The search and seizure operations in the case of three major contractors based out of Bengaluru engaged in the execution of irrigation and highway projects had commenced on October 7.
In a press release, the department has disclosed today that these three groups of Contractors were involved in the suppression of income by resorting to bogus purchases, inflation of labour expenses, booking of bogus sub-contract expenses among others. In one such incident, it was found that one of the groups had booked sub-contract expenses in the name of about 40 individuals unconnected to the construction business.
Another group admitted to having indulged in inflation of labour expenses amounting to 382 crore rupees. A group had made accommodation entries from non-existing paper companies to the extent of 105 crore rupees. The Income Tax department has seized various incriminating evidence and unaccounted cash worth 4.69 crore rupees, unaccounted jewellery and bullion valued at 8.67 crore and silver articles valued at 29.83 crore rupees. The department release says that out of 750 crore rupees unaccounted income disclosed, the Contractors have admitted to an aggregate amount of 487 crore rupees as unaccounted income.