New Delhi (11.07.2021): Income Tax Department on July 06 conducted a series of searches and seizures on a group based in Hyderabad. The group is engaged in real estate, construction, waste management, and infrastructure.

During the operation, incriminating documents and proof of unaccounted transactions were seized. Reportedly, the group had sold a majority stake to a Singapore-based non-resident entity in one of its group concerns during FY 2018-19 and earned huge capital gains.

The group subsequently devised various forged colorable schemes. Documents indicate that the loss was artificially created to set off the respective capital gains. The search operation led to the detection of artificial loss of approximately Rs. 1200 crore, which is to be taxed in the hands of the respective assesses.

The assessee is supposed to have incorrectly claimed bad debts to the tune of Rs. 288 crore on account of related party transactions, which was set off against the aforementioned profits earned.

Unaccounted cash transactions with the associates of the group have also been detected. The entities and associates have admitted to having an unaccounted income of Rs. 300 crore and have also agreed to pay due taxes.