I-T raids 30 places in Bengaluru, UP, Kolkata

A Kolkata-based entry operator was also covered in the search operations, stated the Ministry of Finance in an official release on Tuesday.
Image used for representational purposes
Image used for representational purposes

BENGALURU: The Income Tax Department carried out search and seizure operations on December 18 on various people and their business entities involved in civil construction and real estate, and in running educational institutes in Uttar Pradesh and Karnataka. 

A Kolkata-based entry operator was also covered in the search operations, stated the Ministry of Finance in an official release on Tuesday. The search covered more than 30 premises spread across various locations, including Lucknow, Mainpuri, Mau, Kolkata, Bengaluru and NCR. 

It was found that several entities, engaged in civil construction, were involved in claiming bogus expenditure running into crores of rupees. Incriminating documents, including blank bill books, stamps and signed cheque books of bogus suppliers were found and seized. 

According to the Finance Ministry, a Bengaluru-based trust and its related entities were covered during the search, which “revealed that substantial amounts of trust funds amounting to Rs 80 lakh have been transferred, in the guise of donation, for non-trust purposes, to certain Kerala-based entities connected with Gulf countries, for the personal benefit of the trustees,” stated the official release. 

“Prima facie, it indicates violation of relevant provisions relating to registration of trusts under the Income Tax Act, 1961, for claim of exemption as well as Foreign Exchange Management Act (FEMA) provisions. Evidences with regard to collection of capitation fee of about Rs 10 crore in cash, and expenses of over Rs 4.8 crore incurred from the account of the Trust, for the trustees’ personal benefit, over the last three years, have also been gathered,” stated the Finance Ministry.

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