IT seizes Rs 22Cr worth cash, gold from Hyderabad & Bengaluru based realtors

Hyderabad: The sleuths of Anti-Tax Evasion wing of the Income Tax have seized Rs 22 crore worth cash, Jewelry from two top real estate groups belonging to Bengaluru and Hyderabad. The seizure comes after a spree of IT raids conducted against the leading group of companies, in the recent. To recall, Income Tax sleuths carried out searches against 40 premises owned by the Groups during undated raids.

The evidence recovered from the Group of companies revealed that the two top realtor entered into a Joint Development Agreement (JDA), the Central Board of Direct Taxes have confirmed the same.

After entering into the JDA, the land owners who reported hail from Hyderabad did not declare the capital gains from the transaction. Even though the group obtained completion certificates.

According to the IT sleuths, the amount of disclosure of capital gains (gained via the joint development agreement) is above Rs 400 Crore. During the raids, when IT sleuths stumbled upon a few tax documents, it was found that the said group had suppressed (hide) income to the tune of Rs 90 Crore. "The initial analysis of the seized documents has also revealed that these groups have suppressed income of Rs 90 crore in respect to the revenue recognizable from the sale of units in the real estate deal" an IT statement said.

A breakdown of the undisclosed cash and jewelry seized is Rs 3.50 Crore cash and Rs 18.50 Crore worth gold, respectively.

The CBIT found that both the groups ( hailing from Hyderabad and Bengaluru) have indulged in tax evasion by inflating their expenses in the construction and development business to the tune of Rs 28 Crore. The group claimed 'bogus' purchases and resorted to inflated input-tax credit (bills) of the construction material.