Search Operation Started in Delhi, NCR & Haryana by CBDT Officials

The Central Board of Direct Taxes released a Press Release dated October 15, 2020, in which the board notified that the Income Tax Department has carried out searches and seizure action in Delhi, NCR, and Haryana on October 14, 2020. This has been done by the department in the case of a leading advocate practicing in the field of commercial arbitration and alternative dispute resolution.

The said advocate was suspected of obtaining substantial amounts of cash from his clients to settle their disputes. As per the notification, In this operation 38 campuses spread across Delhi, NCR and Haryana have been searched. In this search Operation, cash of ₹ 5.5 crores has been seized and 10 lockers have been kept under restraint.

Along with cash, Incriminating documents of incalculable cash transactions The Income Tax Department has commenced taking actions against unidentified /nameless property and black money. The Department has issued notices to 2000 people and investments made by the assessee over several years have been also found. Substantial digital data reflecting unaccounted transactions of the assessee and his associates, who are financers and builders, have also been recovered.

There is one case where he had received INR 117 crores in cash from a customer but reflected only Rs. 21 crores, which have been received through cheque, in the records. There is also an event where he received above INR 100 crores in cash from an infrastructure and engineering company for its arbitration processes with a public sector company.

The notification also states that he spent all the unaccounted cash received in the purchase of residential and commercial properties and also in taking over trusts engaged in running of schools. The recovered evidence also indicates an investment of over INR 100 crores in cash in several properties in posh areas in the last two years.

The assessee with his associates has also engaged in purchasing several schools and properties, for the same more than ₹ 100 crores was paid in cash. He has also obtained accommodation entries worth several crores. The notification also states that further investigation is going on.