New Delhi, Oct 16 (IANS): The Income Tax (I-T) Department has seized unaccounted cash to the tune of Rs 94 crore as well as gold and diamond jewellery worth Rs 8 crore in search and seizure operations against some government contractors, real estate developers and their associates during raids carrried out on October 12 at 55 premises across Karnataka, Andhra Pradesh, Telangana and Delhi, according to an official statement issued on Monday..

Further, a cache of about 30 luxury watches of foreign make were unearthed from the premises of a private salaried employee, not engaged in the business of wrist watches, the statement issued by the Central Board of Direct Taxes (CBDT) said.

Large scale unaccounted cash transactions, which are not found recorded in the books of account, have also been found during the search on the premises of assessees, sub-contractors, and associates including certain cash handlers.

A large amount of incriminating evidence in the form of loose sheets, hard copy of documents and digital data have been seized.

The modus-operandi of tax evasion detected indicates that these contractors were involved in reducing their income by inflating expenses by booking bogus purchases, non-genuine claim of expenses with sub-contractors and claiming ineligible expenses.

The irregularities detected in utilisation of contract receipts, has resulted in generation of huge unaccounted cash and creation of undisclosed assets.

Evidence indicating inflation of expenses in the form of discrepancies in Goods Receipt Note (GRN) validation has been unearthed during the search.

Evidence of huge discrepancies in documentation related to purchases booked and actual physical transport of goods have also been unearthed, with regard to bogus transactions with sub-contractors, some of whom were also covered during the search.

Further, these contractors were also involved in booking expenses for non-business purposes. Evidences of claim of liaison expenses have also been found and seized.

Further investigations in the case are in progress.