Income Tax Department carries out searches in Bihar
New Delhi, October 22, 2020
The Income Tax Department carried out searches last Monday in the cases of two Government contractors with premises in Purnea, Katihar and Saharsa and a silk trader in Bhagalpur, all in Bihar.
"The searches were based on intelligence gathered, which indicated that large scale unaccounted cash was being generated and used for various purposes," an official press release said.
According to it, the contractors were making bogus claims of labour, transportation and fuel expenses, which were found to be not supported by any document.
"Further, they have been found to be withdrawing money in cash from the bank accounts of fictitious parties. Incriminating documents including signed blank cheques have been seized during the searches. In some cases, the liabilities were shown to be continuing in the books of accounts for bogus expenses. They were also maintaining undisclosed bank accounts, in which unaccounted cash was being deposited which was used for making fixed deposits, which in turn were pledged to Government departments as security for getting contracts.
"Large cash withdrawals have also been noticed in these bank accounts. The assessees could not explain the purpose of these cash withdrawals. The transactions in the undisclosed bank accounts are being examined," the release said.
During the search, unaccounted cash, fixed deposits and bullion of more than Rs. 2.40 crore have been seized/restrained, it said.
In the case of the silk trader, unaccounted stock has also been detected. Evidences indicating suppression of income of about Rs. 10 crore, along with documents showing large unaccounted investments in immovable properties have been found and seized. These properties are in the process of being valued and attached, the release said.
Further investigations are in progress, it added.