Two days after conducting search and seizure operations in 30 locations in Uttar Pradesh and Karnataka, the income tax department issued a statement on Tuesday, claiming to have detected undisclosed income, fictitious loans and investments in Benami properties – all amounting to hundreds of crore rupees.
The statement did not name any person or company in the statement, but sources confirmed that details relate to the latest searches of the offices of assistants to opposition leaders in election-related Uttar Pradesh.
On Saturday, the tax authorities raided the homes of a leader of the Samajwadi Party (SP) and three others considered close to the president of the SP Akhilesh Yadav, sparking an angry backlash from the party, which accused the department of acting at the request of the BJP ahead of the next assembly ballots.
“The income tax service carried out search and seizure operations on 18.12.2021 on various people and their business entities, carrying out civil and real estate construction activities and managing educational institutes in the UP and the Karnataka. A Kolkata-based entry operator was also covered by the search operation, ”he added.
The tax department said several entities engaged in civil construction were involved in the false expense claim reaching millions of rupees.
“In the case of one company, undisclosed income of over Rs 86 crore from company directors has been detected. Out of it, the person concerned admitted a sum of Rs 68 crore as undisclosed income and offered to pay taxes on it, ”he said.
Pointing out that shell companies were allegedly used to funnel funds, the department said it detected unexplained income and investments of around Rs 12 crore as well as another case of identifying unexplained investments of Rs 11 crore. in a shell company, in addition to investments in Benami properties worth Rs 3.5 crore.
He said the books of accounts relating to a business owner’s turnover exceeding Rs 150 crore in recent years were not traceable.
Research was also carried out against a Kolkata-based hosting provider who allegedly formed various shell companies to provide hosting entries with bogus share capital of Rs 408 crore and a bogus unsecured loan of Rs 154 crore , he added.
“A large amount of prosecution evidence, including paper documents and digital data, was found and seized during the search … Further investigations are ongoing,” the tax department said.
Investigations were also carried out against a Bengaluru-based trust and its related entities, the department said, and unrecorded cash of Rs 1.12 crore was seized along with evidence that a head tax charge of around $ 10. Rs crore had been collected in cash.
In addition, around Rs 80 lakh, transferred under the guise of a donation for non-fiduciary purposes to certain Kerala-based entities including Markazu Saquafathi Sunniyya Trust and Markaz Knowledge City Trust, both with links to the Gulf countries, were for the personal benefit of the directors. , said the tax service.