I-T raids on three highway, irrigation contractors unearth Rs 750 crore
BENGALURU: The Income Tax Department has detected undisclosed income of around Rs 750 crore from three major Bengaluru-based contractors engaged in the execution of irrigation and highway projects, the Ministry of Finance announced on Tuesday.
“Of this, Rs 487 crore has been admitted by the group entities as their undisclosed income,” said the ministry in an official statement. The I-T searches on these contractors were carried out last week on 47 premises across four states.
“During the searches, 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 investigation 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 inquiry, these individuals have admitted to the said manipulation,” stated the ministry.
According to the I-T Department, while one group of contractors admitted to having indulged in inflation of labour expenses amounting to Rs 382 crore, another group has been found to have taken accommodation entries, from non-existing paper companies, to the extent of Rs 105 crore, which was admitted by this group. The tax officials seized various incriminating evidence in the form of physical documents and digital evidence, unaccounted cash of Rs 4.69 crore, unaccounted jewellery and bullion worth Rs 8.67 crore and silver articles worth Rs 29.83 lakh.