New Delhi:
The Central Board of Direct Taxes (CBDT) on Wednesday said that the Income Tax Department has detected unaccounted income of over Rs 70 crore after a recent raid on a leading civil construction group in Karnataka.
On October 28, searches were conducted at several places in North Karnataka.
“The search proceedings have revealed unaccounted income of more than Rs 70 crore, which has been accepted as undisclosed income by the assessee group,” the CBDT claimed in a statement.
CBDT is the policy making body for the tax department.
It said the group is “suppressing” its profits by booking “fake” expenses in material procurement, labor expenses and payments to sub-contractors.
An analysis of the confiscated data reveals that “unaccounted cash has been received by the key person of the group from such vendors/suppliers of material”.
“It was also found that the names of the sub-contractors were used in the name of their own relatives, friends and employees who neither did any work nor did they have the capacity/ability to do the work,” the CBDT said.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)
.