New Delhi, Oct 12 (Agency) Continuing its nationwide crackdown on black money, Income Tax (I-T) department has conducted search and seizure operations on three major Bengaluru-based contractors and claimed to have detected Rs 750 crore hidden income. “The search and seizure actions in these three groups have resulted in detection of undisclosed income of about Rs 750 crore. Out of this, aggregate amount of Rs 487 crore has been admitted by the respective group entities as their undisclosed income,” the I-T department said in a statement. The searches which commenced on October 7 covered 47 premises spread across four states.
The I-T department said that one of the groups admitted to having indulged in inflation of labour expenses amounting to Rs 382 crore. “Further, another group has been found to have taken accommodation entries, from non-existing paper companies, to the extent of Rs 105 crore, which stands admitted by this group,” the statement said. During the search action, it was found that the 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, said the I-T department. “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 enquiry, these individuals have admitted to the said manipulation,” it said. During its operations, the department seized unaccounted cash of Rs 4.69 crore, unaccounted jewellery & bullion valued at Rs. 8.67 crore, and silver articles valued at Rs 29.83 lakh.