Tax research carried out on two promoters based in Ludhiana, Real Estate News, ET RealEstate


NEW DELHI: The Department of Income Taxes carried out search and seizure operations on two major real estate developers in Ludhiana, Punjab.

Thus, the searches were carried out on November 16 in around forty premises in Ludhiana.

“The main conclusion emanating from these search and seizure operations by the two groups concerns the receipt of unrecorded cash by these groups through real estate transactions on equity,” the finance ministry said.

“During the search process, documentary evidence of the nature of a ‘sales agreement’ (commonly known as ‘Biyana’ in local jargon) was found and seized for some properties. “

According to the ministry, these documents indicate that the “contract of sale” for the plots was executed at a much higher amount or rate than the consideration disclosed in the registered deed of sale for the plot.

In addition, the ministry pointed out that the offending documents such as “loose-leaf, excel-sheets” showing the calculation of the receipt of money from certain real estate transactions, software data, discussions from people’s cell phones. concerned, etc. were also recovered.

“A preliminary analysis of this evidence clearly indicates the receipt of unrecorded cash through real estate cash transactions. In addition, some other corroborating evidence supporting the receipt of cash in cash has also been gathered.”

In addition, investigations revealed that unrecorded cash expenses were incurred for the construction of the dwelling house of one of the key people.

“In one of the groups, breaches of the withholding tax provisions were detected with regard to the payments made to the sellers of the land, etc.

“The search resulted in the seizure of unrecorded cash of approximately Rs 2 crore in addition to foreign currency, and unexplained jewelry of approximately Rs 2.30 crore.”


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