Income Tax Department conducts searches in Karnataka

Income Tax Department conducts searches in Karnataka

On October 28, 2021, the Income Tax Department conducted search and seizure operations at several locations in North Karnataka for one of the state’s main groups engaged in civil construction of roads and irrigation projects.

This group has been reducing revenues by reporting fraudulent charges in material purchases, labour expenses, and payment to subcontractors, according to the search operation.

Various damning documents, including digital evidence, were discovered and seized, showing a non-genuine assertion of such expenses. Unaccounted cash was obtained by the key group person from such vendors/suppliers of materials, according to the analysis. It was also discovered that their own relatives/friends/employees were utilised as conduits in the name of subcontractors who did not perform any work and lacked the ability/capacity to do so. These transactions have resulted in unaccounted cash for the assessee group.

The search operation resulted in the discovery of unexplained money of more than Rs. 70 crore, which the assessee group has admitted as hidden income.

More research is being carried out.

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