IT raids unearth Rs 70 cr unaccounted income in construction firm

The Income Tax Department has unearthed Rs 70 crore unaccounted income from a leading civil construction company in Karnataka.
The raids were conducted at various premises of the company on October 28, the I-T department said in a statement on Wednesday.

The company has been suppressing its profits by showing bogus expenses in purchase of materials, labour expenses and payment to subcontractors.

Various incriminating documents, including digital evidence indicating non-genuine claim of such expenses have been found and seized, it added.

Analysis of the same shows that unaccounted cash has been received by the key group person from such vendors, suppliers of materials.

It was also found that their relatives, friends, employees were used as conduits in the name of subcontractors who neither executed any work nor did they have the capability and capacity to execute the work.

The assesse group has been generating unaccounted cash from these transactions, the investigation revealed - IANS