Searches and Seizures! Two govt contracts in Bihar under IT lens-

Patna, October 22: The Income Tax Department on Thursday carried out searches in the cases of two government contractors having premises in Purnea, Katihar and Saharasa and a silk trader in Bhagalpur in Bihar. "The searches were based on intelligence gathered, which indicated that large scale unaccounted cash was being generated and used for various purposes", the statement read.

 

 

The contractors were making bogus claims of labour, transportation and fuel expenses, which were found to be not supported by any document. Further, they were found to be withdrawing money in cash from the bank accounts of fictitious parties. The IT department during the raid has seized incriminating documents including signed blank cheques.

 

The fraud got more clear signalled when the assessee showed the liabilities to be continuing in the books of accounts for bogus expenses. They were also maintaining undisclosed bank accounts, in which unaccounted cash was being deposited which was used for making fixed deposits, which in turn were pledged to government departments as security for getting contracts.

 

"Large cash withdrawals have also been noticed in these bank accounts. The assessees could not explain the purpose of these cash withdrawals. The transactions in the undisclosed bank accounts are being examined", the statement added. During the search, unaccounted cash, fixed deposits and bullion of more than Rs. 2.40 crore have been seized. In the case of the silk trader, unaccounted stock has also been detected.

 

Evidences indicating suppression of income of about Rs. 10 crore, alongwith documents showing large unaccounted investments in immovable properties have been found and seized. These properties are in the process of being valued and attached. Further investigations are in progress, it signed off.