Unveiling the fakeness! Income Tax department raids 38 sites linked to advocate

New Delhi, October 16: The Income Tax Department on Thursday carried out a search and seizure action in the case of a leading advocate practicing in the field of commercial arbitration and alternate dispute resolution. He 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", the statement in relation read.

 

 

During the search the department said to have seized cash of Rs. 5.5 crore, while 10 lockers have been placed under restraint. Incriminating documents of unaccounted cash transactions and investments made by the assessee over several years have also been found along with substantial digital data reflecting unaccounted transactions of the assessee and his associates, who are financers and builders.

 

In one case, the department explained, 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.

 

The unaccounted cash received, has 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. Further investigations are in progress, the statement signed off.