I-T seizes ₹102 crore in raids in Telangana, AP, Karnataka on govt contractors, realtors

Further, the cache of about 30 luxury wristwatches of foreign make was unearthed from the premises of a private salaried employee, not engaged in the business of wristwatches.

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Incriminating evidence

As per the CBDT, a incriminating evidence in the form of loose sheets, hard copies of documents, and digital data have been found and seized. 

The modus operandi of tax evasion detected indicates that these contractors were involved in reducing their income through inflation of expenses by booking bogus purchases, non-genuine claim of expenses with sub-contractors, and claiming ineligible expenses. 

The irregularities detected in the utilisation of contract receipts have resulted in generation of huge unaccounted cash and the creation of undisclosed assets. 

Evidence indicating inflation of expenses in the form of discrepancies in Goods Receipt Note (GRN) validation has been unearthed during the search. 

Evidence of huge discrepancies in documentation related to purchases booked and actual physical transport of goods have also been unearthed, with regard to bogus transactions with sub-contractors, some of whom were also covered during the search. 

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Unaccounted cash transactions

Further, these contractors were also involved in booking expenses for non-business purposes. Evidence of claim of liaison expenses has also been found and seized. 

Large-scale unaccounted cash transactions, which are not found recorded in the books of account, have also been found during the search, from the premises of assessees, sub-contractors, and associates including certain cash handlers.  

Further investigations are in process.