New Delhi, Nov 1 (IANS): The Income Tax Department carried out a search and seizure operation on a prominent road construction contractor in Bihar and Jharkhand. The search was initiated on October 27 at various premises located in Bihar, Jharkhand, Maharashtra and West Bengal.

According to the I-T department, the searches revealed that the group has been suppressing its profits by inflating expenses on purchase of materials. Such excess material is sold in the market in cash but cash so generated remains unaccounted.

The department also found that the group obtained accommodation entries for inflating other business expenses.

Incriminating documents such as handwritten diaries have been seized from the premises of commission agents who have been assisting the group in these dubious practices. These seized documents carry evidences of unaccounted cash generation and movement of material.

The search operation has further revealed that the group is also suppressing contractual receipts and service income. It was seen that the group is not maintaining proper books of accounts, including supporting documents like bills and vouchers.

Various incriminating documents recovered and seized during the search indicate the movement of unaccounted cash between different locations for investment in immovable properties at various locations and cash expenses of a personal nature.

It was also detected that the commission agents and suppliers of bogus bills have also evaded tax on crores of rupees in income as they have indulged in providing accommodation entries to other parties as well.

The search action has resulted in seizure of Rs 5.71 crore in unaccounted cash, a statement by the department said, adding that 10 bank lockers have been placed under restraint.

Investment made in fixed deposits etc. of about Rs 60 crore is under verification. The search action has led to the detection of unaccounted income to the tune of about Rs 100 crore. Further investigations are in progress.