Income Tax Department initiated Search & Seizure actions on 20.10.2022 and 02.11.2022 on certain individuals who had executed Joint Development Agreements (JDAs) with various real-estate developers. The search action covered more than 50 premises spread across Bengaluru, Mumbai and Goa. During the course of the search operations, a large number of incriminating evidences, in the form of documents and digital data have been found & seized.
Evidences regarding the sale agreements, development agreements and occupancy certificates (OCs) have also been seized. These evidences revealed that the land owners had not disclosed income accrued to them from capital gains on transfer of the land given for development through JDAs to various developers, even after issue of the OCs from the authorities.
It was also unearthed that in many instances, the land owners suppressed income from capital gains for various years by artificially inflating the cost of acquisition & various other costs, and by not disclosing full value of consideration on transfer land. It was also found that some of the land owners didn’t even file their ITRs for various years, where capital gains income had accrued to them.
When confronted, the assessees concerned admitted their lapses and agreed to disclose income from capital gains detected in their respective cases, and pay due taxes thereon. So far, the search actions have led to detection of unaccounted income of more than Rs. 1300 crore. Further, undisclosed assets in the nature of cash and gold jewelry worth more than Rs. 24 crore have also been seized. Further investigations are in progress.
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