Income Tax Search Operation Uncovers Rs. 161 Crore in Hyderabad

Income Tax Department's Search Operations in Hyderabad

On January 28, 2021, the Income Tax Department conducted a significant search and seizure operation targeting a group based in Eluru. This operation encompassed 21 locations across Andhra Pradesh and Telangana. The entities within this group are involved in various sectors, including Film Financing, Aqua Culture, Real Estate, Distribution of Films, and Money Lending.

Findings During the Search Operation

The operation unearthed several key findings:

• Seizure of Documents: Handwritten books, agreements, and numerous loose sheets detailing undisclosed cash transactions were confiscated.
• Cash Lending Practices: It was discovered that the group is engaged in substantial cash lending, collecting interest in cash, all of which remain unreported.
• Data Manipulation: Certain entries amounting to Rs. 13 crore were found deleted from cloud data but were successfully recovered.
• Income Suppression: Evidence of significant income suppression from film distribution and theatre operations has been identified.
• Undisclosed Cash Transactions: The group is also accepting cash payments exceeding the registered values in the sale of real estate plots.

Financial Impact of the Seizure

The search operation resulted in the seizure of total assets valued at Rs. 17.68 crore. This includes:

• Cash: Rs. 14.26 crore
• Gold Jewelry, Bullion, and Silver: Valued at Rs. 3.42 crore

Conclusion of Findings

In total, the operation has led to the detection of incriminating evidence related to undisclosed financial transactions amounting to Rs. 161 crore from the financial years 2016-17 to 2019-20. These findings are deemed taxable for both parties involved in the transactions. Additional investigations are currently underway to further explore these undisclosed activities.