Home / News / India /  I-T Dept detects undisclosed income of 750 cr after raids in Bengaluru

The Income Tax Department has detected undisclosed income of about 750 crore after carrying out search operations on three contractors based out of Bengaluru, Ministry of Finance informed on Tuesday. 

The department carried out search and seizure operations on contractors engaged in the execution of irrigation and highway projects. The searches commenced on 7 October and have been carried out at 47 premises spread across 4 states.

During the search action, it was found that these three groups were involved in suppression of their income by resorting to bogus purchases; inflation of labour expenses; booking of bogus sub-contract expenses etc. 

The probe revealed that one of the groups has booked bogus sub-contract expenses in the name of about 40 individuals of no means and unconnected to the construction business. Upon enquiry, the individuals have admitted to the said manipulation, the ministry said. 

According to the statement, one of the groups admitted to having indulged in inflation of labour expenses amounting to 382 crore. Further, another group has been found to have taken accommodation entries, from non-existing paper companies, to the extent of 105 crore, which stands admitted by this group.

The department found and seized various incriminating evidences in the form of physical documents, digital evidences from the sites. During the search, unaccounted cash of 4.69 crore; unaccounted jewellery and bullion valued at 8.67 crore; and silver articles valued at 29.83 lakh have been seized, it said.

The search and seizure actions in these three groups have resulted in detection of undisclosed income of about Rs. 750 crore. Out of this, aggregate amount of 487 crore has been admitted by the respective group entities as their undisclosed income, according to the ministry.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less

Recommended For You

Trending Stocks

Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout