I-T Dept conducts search operation across Mumbai and Pune at more than 40 premises of prominent real estate group

The Income Tax Department conducted search and seizure operation on Monday across Mumbai and Pune at more than 40 premises of a prominent group involved in real estate development. The department unearthed evidence related to transactions aggregating about Rs.700 crore. The search action also unravelled transactions wherein by way of accounting jugglery, income on transactions worth about Rs.525 crore has been evaded.  ‘On Money’ receipt on sale of Residential / Commercial Blocks amounting to Rs.100 crore was corroborated during the search. The investigation and search action is still in progress. [caption id=“attachment_4347785” align=“alignleft” width=“300”] Representational image. Reuters.[/caption] Separately, teams from the Income Tax department on Tuesday carried out searches and surveys at the premises of five real-estate firms, including Hubtown, Mumbai Mirror reported. “In cases where the discrepancies are found, notices are served to the concerned individual or firm to offer explanation,” a source was quoted as saying by Mumbai Mirror. On 23 July also, Income Tax Department conducted searches in a group covering 13 premises across 3 States (Delhi, Haryana & Himachal Pradesh).  Evidence detected revealed undisclosed cash dealings of huge amounts in immovable property transactions, construction etc. Recently, the Comptroller and Auditor General (CAG) had panned the assessment process of the income-tax department (ITD), which it said is riddled with persistent and pervasive irregularities. The department, it said, suffered from structural weakness as well as the absence of appropriate institutional mechanism to address the issue.