The firm is based in North Karnataka which was searched by the ED last month. The group is engaged in construction of roads and irrigation projects
The Income Tax department has detected unaccountable income of Rs 70 crore allegedly generated by a Karnataka-based group that is engaged in construction of roads and irrigation projects, officials said.
The tax officials had initiated a search and seizure operation on the business group on October 28. Other various premises of the group in North Karnataka were searched by the ED.
"The search operation has said that the group has been suppressing its profits by booking bogus expenses in purchase of materials, labour expenses and payment to subcontractors," said a statement by the I-T department.
The officials have alleged that various incriminating documents, including digital evidence, indicating non authentic claims of such expenses, were found and seized during the search.
The I-T department said that "Unaccounted cash has been received by the key group person from such vendors and suppliers of materials. It was also found that their own relatives, friends and employees were used as conduits in the name of subcontractors who neither worked nor did they have the capability to execute the work.
The business group has been allegedly generating unaccounted cash through these transactions.
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