Income Tax Search conducted in Bihar and Jharkhand

Income Tax Search conducted in Bihar and Jharkhand

The Income Tax Department conducted a search and seizure operation in Bihar and Jharkhand on a prominent road construction contractor. The search began on October 27, 2021, at various locations in Bihar, Jharkhand, Maharashtra, and West Bengal.

The investigations revealed that the group has been suppressing profits by inflating expenses on material purchases. Excess material is sold in the market for cash, but the money generated remains unaccounted for.

It has also been discovered that the group obtained accommodation entries in order to inflate other business expenses. Incriminating documents, such as handwritten diaries, were seized from the offices of commission agents who were assisting the assessee group in these questionable practises. These seized documents contain evidence of unaccounted cash generation and material movement. The investigation has also revealed that the group is concealing contractual receipts and service income. It was also discovered that the group does not keep proper books of accounts, including supporting documents such as bills and vouchers.

Various incriminating documents recovered and seized during the search indicate the movement of unaccounted cash between different locations for its investment in immovable properties in various locations and personal cash expenses. During the search, it was discovered that the commission agents and suppliers of bogus bills had also evaded tax on crores of dollars in income by providing accommodation entries to other parties.

The search resulted in the seizure of Rs 5.71 crore in unaccounted cash. Ten bank lockers have been placed under lock and key. An investment of approximately Rs. 60 crore in fixed deposits and other instruments is being verified.

The search operation resulted in the discovery of approximately Rs. 100 crore in unaccounted income.

More research is being conducted.

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