Tax Raids at Haryana Independent MLA's Residence, Offices

The Income Tax Department on Thursday raided Gurugram based real estate company, its promoters, directors and other group companies, covering a total of 20 premises. The aforementioned company is active in government contracts for the construction of roads, highways, bridges and runways. The group is in the real estate development and residential complexes sector.

As per the report, it is the offices and residences of Haryana's Independent MLA from Meham, Balraj Kundu, in Rohtak. Although the statement did not name the organization looking for tax sleuths, it was described by official sources as an enterprise linked to Mr. Kundu.

"The search has yielded evidence of bogus long-term capital gain of ₹ 25 crore in the names of the main promoter and family members in the year 2012-13 and 2013-14, on which no tax has been paid," the CBDT said.

The parties in whose names such expenses were reported were found to have been unaware of transactions conducted on their behalf and to have rejected all such services undertaken on their behalf. This sum of Rs 100 crore was transmitted as share capital and share premium back to the group companies.

"The search has also established that bogus expenses in the form of sub-contracts to the tune of Rs 100 crore have been claimed by the group, to reduce its taxable income," it added.

So far, cash of Rs 1 crore and foreign currency worth about 14000 US dollars have been discovered and confiscated. Also, 15 lockers have been found and placed under restraint.

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