Income Tax Dept raids Advocate: 38 premises of a leading commercial arbitration lawyer; Seizes Rs 5.5 crore cash

The Income Tax Department on Wednesday carried out a "search and seizure action" in a case involving a leading advocate who practices in the field of commercial arbitration and alternate dispute resolution. .As per a release issued by PIB, the Advocate was suspected to be receiving substantial amounts in cash from his clients, to settle their disputes..It is informed that during the search, the Income Tax authorities covered 38 premises spread over Delhi, NCR and Haryana. ."Cash of Rs. 5.5 crore has been seized, while 10 lockers have been placed under restraint. Incriminating documents of unaccounted cash transactions and investments made by the assessee over several years have been found. Substantial digital data reflecting unaccounted transactions of the assessee and his associates, who are financers and builders, has also been recovered.", it is added. .As per the Release, for one of his/her cases, the advocate/assessee received cash to the tune of Rs 117 crore from the client. However, only Rs 21 crore was shown in his records. .In another case, he/she is said to have received more than Rs 100 crore in cash from an infrastructure and engineering company for its arbitration proceedings with a public sector company..The Authorities claim that the unaccounted cash has been invested in the purchase of residential and commercial properties and in taking over of trusts engaged in running of schools. ."Evidence recovered indicate investment of more than Rs 100 crore in cash in several properties in posh areas in the last two years. The assessee and his associates have also purchased several schools and properties, for which also more than Rs. 100 crore was paid in cash. He has also taken accommodation entries worth several crores.", it is informed. .The investigation is still in progress. Read the Press Release by Ministry of Finance.