Income Tax Department Targets Real Estate Developers in Andhra Pradesh and Telangana

Income Tax Department Conducts Search Operations in Andhra Pradesh and Telangana

On January 5, 2022, the Income Tax Department executed a search and seizure operation targeting three real estate developers involved in land development and construction activities in Kurnool and surrounding areas in Andhra Pradesh and Telangana. The operation spanned over two dozen locations, including Kurnool, Ananthapur, Kadapa, Nandyal, and Bellary.

Key Findings from the Search Operations

During these search operations, the following significant evidence was discovered and seized:

• Incriminating Documents: Handwritten records, agreements, and other related documents.
• Digital Data: Seizures included information from specialized software applications and other electronic devices.

In the case of one assessed group, evidence revealed the use of software that had been deliberately modified. This manipulation was aimed at concealing unaccounted cash by ensuring only sale considerations that matched the registered sale price were recorded in the official accounts.

Cash Transactions Identified

Investigations have established that these developers accepted cash payments beyond the registered property values. This unaccounted cash was allegedly utilized for:

• On-money Payments: Additional payments made during land purchases.
• Miscellaneous Expenditures: Other undisclosed expenditures.

Seizures and Financial Impact

As a result of the ongoing search operations, the following financial irregularities were noted:

• Seized Cash: Unaccounted cash amounting to ₹1.64 crore has been confiscated.
• Identified Cash Transactions: Unaccounted cash transactions totaling ₹800 crore have been uncovered.

Conclusion

The Income Tax Department continues to investigate these matters to uncover the full extent of unaccounted transactions and to enforce compliance with tax regulations.