The Income Tax Department carried out search and seizure operations on 10.11.2021 on three different groups at 30 different premises in Visakhapatnam, Hyderabad, Vizianagaram and Srikakulam. These groups are mainly engaged in real estate business of development of residential plots and construction of apartments.

During the search operation, various incriminating evidences such as digital evidence, hand written books, loose sheets containing undisclosed cash transactions were found and seized.  The analysis of this evidence reveals that expenses have been inflated through bogus claims, to suppress taxable income. It was also detected that the groups had resorted to making transactions in cash which have not been reflected in the books of accounts.

So far, unaccounted cash of ₹ 1.20 crore and jewellery valued at ₹ 90 lakh have been seized. Prohibitory orders have been placed on 9 bank lockers. Overall, the search operation has resulted in the detection of undisclosed income to the tune of about ₹ 75 crore.

Further investigations are in progress.

Search and seizure operations uncover inflated expense claims and unrecorded cash, leading to detection of undisclosed income and ongoing probes. Search and seizure operations at multiple real estate group premises yielded digital records, handwritten books and loose sheets showing undeclared cash transactions and inflated expense claims used to suppress taxable income; seizures included unaccounted cash and jewellery and prohibitory orders on bank lockers, and further investigations remain ongoing.