Over Rs 160-cr worth dubious business entries found after raids on Telangana contractor

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New Delhi, Jan 12 (PTI) The Income Tax department has detected blackmoney of over Rs 160 crore through alleged bogus claim of input tax credit and other instances after it raided a 'prominent' civil contractor based in Telangana, the CBDT said on Tuesday.

The searches were carried out on January 7 at 19 premises in state capital Hyderabad against the unidentified entity that was 'generating cash through the use of bogus sub-contracts and billers'.

The search has also covered a network of individuals running the racket of entry operation and generation of huge cash through fake billing, it said.

'Several shell or dummy entities or firms were used by the searched entry operators for layering of unaccounted money and cash withdrawals against fake bills issued wherein bogus input tax credit (under the GST) was passed on. 'Statements of such entry operators, their dummy partners and employees and cash handlers of the beneficiaries have also been recorded, clearly validating the entire money trail,' the CBDT said in a statement here.

The Central Board of Direct Taxes (CBDT) frames policy for the income tax department.

Evidences of bogus sub-contracts being given through intermediaries operating shell entities were also seized, it said. 'Evidence of the use of this modus to generate huge unaccounted cash was found along with details of the entire network of the entry operators, intermediaries, cash handlers, beneficiaries and the firms and companies involved.

'Forensic analysis of digital data, including pen drive, retrieved mails, has given clinching evidences in this regard,' it said.

So far, the statement added, documents that provide evidence of accommodation entries of more than Rs 160 crore have already been found and seized, and the assessee company has also 'admitted' the same in its statement recorded before the tax authorities.

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