Income Tax: In its continued operation against the builders involved in tax evasion, the Income Tax department raided a prominent Mumbai builder last month. The search and seizure operation covered 40 places linked to the builder across Mumbai and Pune and unearthed bogus transactions like bogus unsecured loans and long term capital gains and fake sale of commercial and residential property involving a sum of Rs 700 crores, said the Central Board of Direct Taxes.
“The search action has unravelled peculiar transactions wherein by way of creative accounting, taxable income on the transactions worth about Rs.525 crore has been evaded,” said the CBDT.
“On money receipts on the sale of residential and commercial properties amounting to Rs 100 crore has been corroborated during the search. During the search, incriminating evidence was unearthed pertaining to modus operandi establishing the introduction of accommodation loans by the group, which have been found to be bogus,” alleged the Income Tax department.
READ: GST: Gross GST collections in July remains above Rs one lakh crore
“Moreover, use of entry providers and hawala operators for making bogus entries of Long Term Capital Gains (LTCG) by the promoters have been affirmed during the search. The action has also resulted into detection of jewellery worth approximately Rs 14 crore, which is under verification,” added the department.
The investigation and search action was still ongoing at the time of writing this report.
