IT Department Carries Out Searches On Real Estate Firm, School in Srinagar

Srinagar: Income Tax Department conducted searches in J&K on a group of three assessees, based in Srinagar. These searches were conducted at 15 residential and business premises, out of which 14 were in Srinagar and one in Delhi.

The group is engaged in multiple businesses including real estate, construction, and renting of commercial and residential complexes in Srinagar, hotel industry, handicrafts, carpet trading, etc.

The search has lead to a seizure of unaccounted cash amounting to Rs 1.82 crore and jewelry worth Rs. 74.00 lakh. Total undisclosed investments and cash transactions of Rs. 105 crore of the group, have been unearthed during the searches.The group owns a huge mall of 75,000 square feet in Srinagar.

The land was acquired under the Jammu and Kashmir State Lands (Vesting of Ownership to the Occupants) Act, 2001 (popularly known as the ‘Roshni Act’) from the State Government at a throwaway price as reported.

The search has uncovered shreds of evidence of unexplained investment of more than Rs. 25 crores in this mall.

The group is also constructing 6 residential towers in Srinagar, out of which 2 towers, of around 50 flats each, have already been completed and the remaining are under construction, for which also income tax returns have not been filed.

The group is also running a school, under a trust which is not registered under the Income Tax Act, 1961.

One of the trustees has been admitted to having withdrawn substantial cash from the said trust which has been diverted towards other business purposes and personal expenses of the group.

The search has lead to the recovery of incriminating evidence regarding receipt and payment of cash amounting to more than Rs. 50 crore from various premises.

Three lockers have been found, which have been put under restraint.  Further investigations are in progress.