Bhopal, April 16 (Inditop.com) Income Tax (IT) raids were conducted at the premises of over 10 builders in seven cities across Madhya Pradesh for alleged tax evasion, IT officials said Friday.
“Incriminating documents indicating tax evasion worth crores of rupees have been seized during the IT raids conducted at 19 premises in Bhopal, Jabalpur, Gwalior, Chhatarpur, Sagar, Rewa and Satna,” an official said.
Builders whose premises were searched are those with large turnover ranging from Rs.5 crore to Rs.50 crore annually.
These include CI Builders, Essarjee Builders, Shubalaya Builders, Indus Builders and Ultimate Builders of Bhopal, two sites of B.S. Khanna group in Jabalpur, Geetanjali Builders of Sagar, two offices of GLR Real Estate and Neotariff Construction in Gwalior, Peptek Construction in Chhatarpur, Peptek Housing in Satna and Project Kesari in Rewa, the official said.
“It appears that majority of these builders were misusing facilities extended to them under Section 88 IB of the Income Tax Act, which enables them to avail cent percent rebate in profit on applicable conditions like if a builder is having more than one acre land in city and built up area is not more than 1,500 sq feet, no tax is applicable to him,” he added.
“Several incriminating documents have been found indicating substantial suppression of income,” said Chief Commissioner (Income Tax) Kamlesh Argal.
“However, the builders were constructing luxurious houses and were selling them at high rates by showing less built up area. The builders also showed higher labour costs during construction and thus less income from sale of property,” an official said.
