Airline under I-T scanner

The Income Tax Department has conducted searches on a real estate company, that also runs a private low-cost airline, for alleged money laundering to evade taxes.

"Preliminary investigations indicate that while the main group companies have not paid any tax for several years, the market value of the land holdings of the group is over Rs 1,000 crore. Further investigations are in progress," the Central Board of Direct Taxes said in a statement today, without naming the group.

Tax officials have searched 21 premises of the group located at Delhi, Gurgaon, Sirsa, Chandigarh and some other cities in the last few days.

Today, Central Board of Direct Taxes officials added that the operation resulted in seizure of large documentary and digital evidence indicating acquisition of large tracts of land in the names of over 50 'benami' companies, infusion of share capital in bogus names in group companies for purchase of land and receipt of unaccounted money on sale of commercial plots.

The department has also seized evidence on investment of unaccounted funds in purchase of hotel plot from the Haryana Urban Development Authority and circulation of funds to boost share capital so as to meet the mandatory requirements of the Directorate General of Civil Aviation for private airlines.

Besides, cash and jewellery of over Rs 1 crore has been seized and six lockers sealed.