Income Tax department searches contractors in Bihar
October, 31st 2020
Income Tax department said on Friday that searches on four contractor groups in Bihar have led to detection of tax evasion and financial irregularities.
In searches carried out on Thursday on contractors based in Patna, Bhagalpur, Hilsa, and Katihar, expenses related to material and labour supply were found to be inflated and bogus entries in accounts were detected. Tax officials also held surveys on some traders of mined rocks in Gaya, said an official statement.
In the case of a contractor, payments were made to various persons without any evidence of having received any supplies. Payments made to bogus parties are received back as unsecured loan.
Bank documents, accounts and other incriminating material of some bogus parties have been seized from the premises of the assessee, said the statement.
“These documents and consequential field investigations show the parties are not genuine and bank accounts are being operated by the assessee only. The cash generated has been used in acquiring properties," said the statement.
The searches have led to unearthing of unaccounted income of about ₹75 crore so far. The investigation is on, said the statement.