New Delhi, Dec 21 (Agency) The Income Tax Department carried out search and seizure operations on various business entities, engaged in the business of civil construction and real estate and running educational institutes in Uttar Pradesh and Karnataka. Surabhi Ahluwalia, spokesperson, Central Board of Direct Taxes said the searches were conducted on more than 30 premises, including Lucknow, Mainpuri, Mau, Kolkata, Bengaluru and National Capital Region. Large amount of incriminating evidence, including hard copy documents and digital data were found and seized during the search. Ahluwalia said in the preliminary analysis, it was found that several entities, engaged in the business of civil construction, were involved in claiming bogus expenditure running into crores of rupees. Various incriminating documents, including blank bill books, stamps, signed cheque books of bogus suppliers were found and seized.
In the case of a proprietary concern, books of accounts relating to its turnover exceeding Rs 150 crore during the last few years could not be produced. In another concern, it was detected that it used shell companies to route its unexplained income and investments. Such unexplained investment to the tune of Rs 12 crore was identified. A Kolkata based accommodation entry provider was also covered in connection with providing accommodation entries to the persons. It was found that the entry operator formed various shell companies to provide accommodation entries of bogus share capital to the tune of Rs 408 crore and bogus unsecured loan of Rs 154 crore through these shell companies. Substantial amount of digital data evidencing hawala transactions was also found and seized during the search operation, said Ahluwalia. In a Bengaluru based Trust and its related entities covered in the search action, it was revealed that substantial amounts of trust funds amounting to Rs 80 lakh were transferred, in the guise of donation, for non-trust purposes, to certain Kerala based entities including Markazu Saquafathi Ssunniyya Trust and Markaz Knowledge City Trust, connected with Gulf countries, for the personal benefit of the trustees.