The Income Tax Department claimed on Wednesday that it had discovered Rs 700 crore in tax evasion after recently raiding two real estate developers in Hyderabad. The Income Tax Department conducted search and seizure operations on two real estate developers who were primarily involved in real estate activities in and around Yadagirigutta, a Hyderabad City suburb.
They are involved in plot ventures as well as apartment construction.
Many incriminating documents, handwritten books, agreements, and other items indicating unaccounted cash transactions were seized during search operations. Data was also recovered from a specialised software application and other electronic devices.
The groups were discovered to be accepting cash in excess of the registered value, and such unaccounted cash is used for on-the-spot payment for land purchases and other incidental business expenditure.
During the search, unaccounted cash worth Rs. 11.88 crore and gold jewellery worth Rs. 1.93 crore were seized. The search yielded evidence of wrongdoing relating to unaccounted cash receipts totalling Rs. 700 crore over the previous six years, the income from which is taxable in the hands of the transacting parties.