Income Tax raids uncover Rs 94 crore in cash and Rs 8 crore worth of Jewellery in Karnataka

The Income Tax department executed extensive raids across 55 locations in Karnataka, Andhra Pradesh, Telangana, and New Delhi.

Bengaluru: In a recent operation, the Income Tax department executed extensive raids across 55 locations in Karnataka, Andhra Pradesh, Telangana, and New Delhi. The focus of the operation was government contractors, real estate developers, and their associates. On October 12, substantial amounts of unaccounted cash, gold, diamond jewellery, and luxury wristwatches were seized, totaling a significant sum.

The raids resulted in the confiscation of Rs 94 crore in cash, along with gold and diamond jewellery valued at over Rs 8 crore. The tax department also uncovered approximately 30 luxury wristwatches during the searches. A multitude of incriminating evidence, encompassing loose sheets, hard copies of documents, and digital data, was seized during the operations.

The tax authorities alleged that the targeted contractors were involved in inflating their expenses deliberately, including booking bogus purchases and making non-genuine claims of expenses in collaboration with sub-contractors. Such practices were used to reduce their taxable income.

The discrepancies discovered in the utilization of contract receipts have led to the discovery of considerable unaccounted cash and the creation of undisclosed assets. The evidence showed instances of expense inflation, including discrepancies in Goods Receipt Note (GRN) validation and documentation related to purchases.

Furthermore, the contractors were found to be booking expenses for non-business purposes and making false claims of liaison expenses. The search revealed large-scale unaccounted cash transactions that were not recorded in the books of account, implicating both the assessees and their associates.

Further investigation is underway.

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