IT raids in NCR unearths advocate's unaccounted cash, property investments

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SME Times News Bureau | 16 Oct, 2020
The Income Tax Department has said that its search and seizure action across Delhi, NCR and Haryana in the case of a leading advocate practicing in the field of commercial arbitration and alternate dispute resolution has led to findings of unaccounted cash and huge investments in posh properties.

An official statement, wherein the Finance Ministry did not mention the name of the advocate, said that the search was conducted in 38 premises spread over Delhi, NCR and Haryana on Wednesday.

It noted that the advocate was suspected to be receiving substantial amounts in cash from his clients to settle their disputes.

"In one case, 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," it said.

As per the IT Department, the unaccounted cash received was 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 more than Rs 100 crore was paid in cash. He has also taken accommodation entries worth several crores," said the statement.

During the search, cash worth Rs 5.5 crore has been seized, while 10 lockers have been placed under restraint.

Incriminating documents of unaccounted cash transactions and investments made by the assessee over several years have been found, as per the ministry's statement.

Substantial digital data reflecting unaccounted transactions of the assessee and his associates, who are financers and builders, has also been recovered, it added.

The department said that further investigations are in progress.