The Income Tax Department has unearthed black money to the tune of Rs 70 crore in a search and seizure operation carried out on the premises of one the leading construction groups of Karnataka, according to an official statement issued today.
The search operation conducted last week,has revealed that the group has been suppressing its profits to dodge taxes by booking bogus expenses in purchase of materials, labour expenses and payment to subcontractors.
Various incriminating documents including digital evidence indicating bogus claims of such expenses have been found and seized.
It has been found that the groups promoters had used their own relatives, friends and employees as conduits in the name of subcontractors who neither executed any work nor did they have the capability to execute the work. The construction group has been generating unaccounted cash from these paper transactions.
According to the Income Tax Department’s statement, the North Karnataka company engaged in the construction of roads and irrigation projects has also admitted that Rs 70 crore is undisclosed income.
Further investigation is in progress.
