Income Tax Department raids premises of advocate in Delhi, NCR and Haryana

New Delhi, October 16, 2020

The Income Tax Department carried out raids on Wednesday on premises linked to a leading advocate practising in the field of commercial arbitration and alternate dispute resolution, who was suspected to be receiving substantial amounts in cash from his clients to settle their disputes.

"During the search 38 premises spread over Delhi, NCR and Haryana have been covered," an official press release said.

According to the release, cash worth Rs 5.5 crore had been seized during the search, while ten lockers have been placed under restraint.

"Incriminating documents of unaccounted cash transactions and investments made by the assessee over several years have been found. Substantial digital data reflecting unaccounted transactions of the assessee and his associates, who are financers and builders, has also been recovered," it said.

The release said that, in one case, the assessee had received Rs 117 crore from a client in cash, whereas he had shown only Rs 21 crore in his records, which was received through cheque.

"In another case, he received more than Rs 100 crore in cash from an infrastructure and engineering company for its arbitration proceedings with a public sector company," it said.

The release alleged that the unaccounted cash received had been invested by the assessee in purchase of residential and commercial properties and in taking over of trusts engaged in running of schools.

"Evidences recovered indicate investment of more than Rs 100 crore in cash in several properties in posh areas in the last two years. The assessee and his associates have also purchased several schools and properties, for which also more than Rs 100 crore was paid in cash. He has also taken accommodation entries worth several crores," it said, adding that further investigations were in progress.

NNN