The Income Tax Department continued its raids for the second day in a row on the offices of Mumbai-based property developer HDIL and residences of some of its directors, according to sources in the I-T Department.

HDIL Deputy General Manager Hari Pande said: There was no concealment of income by the company. The I-T Department held that there was additional income earned by the company to the tune of Rs 350-400 crore through the sale of transferable development rights.

We argued that we are exempted from that under Section 80-IA and 80-IB, but the department did not agree with our argument. The I-T officials said that the company is liable to pay an advance tax of Rs 100 crore at the rate of 30 per cent. We have agreed to pay that, for now.

The raids started on Thursday morning went on till Friday evening, sources said. Over 150 I-T officers conducted raids on 20 premises of the company and its key officials residences, sources said.