New Delhi: The Income Tax Department conducted search and seizure operations on a real estate group, engaged in the construction of residential and commercial projects in Mumbai and Navi Mumbai Region on November 25.
The agency claimed that the group did not deduct tax at source on certain payments claimed by it amounting more than Rs 300 crore.
“The group is mainly carrying out development of slum rehabilitation projects. The search action covered around 30 premises. Several documentary and digital evidences have been found and seized demonstrating receipt of cash to the tune of Rs.100 crore, as part of consideration on sale of flats, which is not accounted for in the regular books of account,” said the IT department in a statement.”
“The assessee group did not deduct tax at source on certain payments claimed by it which aggregate to more than Rs 300 crore,” it added.
“The modus operandi adopted by the group includes issuing of promissory notes equivalent to the on-money component to the customers and these promissory notes are destroyed after registration of the flat,” said the agency.
It seized unaccounted cash over Rs 6 crore during the searches.
