I-T dept finds bogus spends of crores after raids linked to Samajwadi Party

In the case of one company, it said, undisclosed income of over Rs 86 crore of its directors was detected

The Income Tax Department detected bogus expenditure claims and alleged transfer of share capitals worth crores of rupees through shell companies after it recently raided some entities in Karnataka and Uttar Pradesh, including people linked to the Samajwadi Party.

The Central Board of Direct Taxes (CBDT), which frames policy for the tax department, said in a statement that searches on various persons and their business entities engaged in civil construction, real estate and running educational institutes in Uttar Pradesh and Karnataka were conducted on December 18.

A Kolkata-based entry operator (a person who undertakes fake transactions) was also covered in the search