NEW DELHI: The Income Tax Department has detected unaccounted income of more than Rs 70 crore after it recently raided a leading civil construction group of Karnataka, the CBDT said on Wednesday.
The searches were carried out on October 28 at multiple locations in north Karnataka.
"The search action has led to detection of unaccounted income of more than Rs 70 crore which has been admitted as undisclosed income by the assessee group," the CBDT claimed in a statement.
The Central Board of Direct Taxes (CBDT) is the policy-making body for the tax department.
It said the group has been "suppressing" its profits by booking "bogus" expenses in purchase of materials, labour expenses and payment to sub-contractors.
Analysis of seized data shows that "unaccounted cash has been received by the key group person from such vendors/suppliers of materials."
"It was also found that their own relatives, friends and employees were used as conduits in the name of sub-contractors who neither executed any work nor did they have the capability/capacity to execute the work," the CBDT said.
The assessee group has been generating "unaccounted" cash from these transactions, the statement said.