Search & Seizure action carried out by Income tax Department in a case of a leading Advocate

The Income Tax Department has carried out a search and seizure action on 14-10-2020 in the case of a leading advocate practicing in the field of commercial arbitration and alternate dispute resolution. He was suspected to be receiving substantial amounts in cash from his clients, to settle their disputes. During the search 38 premises spread over Delhi, NCR and Haryana have been covered.

            During the search, 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.

            In one case, the assessee had received Rs 117 crore from a client in cash, whereas he had shown only Rs 21 crore in his records, which was received through cheque. In another case, he received more than Rs 100 crore in cash from an infrastructure and engineering company for its arbitration proceedings with a public sector company.

            The unaccounted cash received, has been invested by the assessee in the purchase of residential and commercial properties and in taking over of trusts engaged in running of schools. Evidences recovered indicate an 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.

            Further investigations are in progress.


Ministry of Finance

[Press Release dt. 15-10-2020]

4 comments

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    We see people practicing Law are talking about corruption of government. I wonder their outer behaviour has little relevance to what they talk. The recent case is a tip-of- an iceberg. Lawyers in general never display righteous approach in their tax management and indulge in tax evasion. All kind of financial malpractices they promote in connivance with people having unauthorised dirty money. Legal people with Black Gowns feel empowered to make them walk as they like. Legal, Medical, Political professionals & Dirty Business Houses deteriorated fiscal management of government to an extreme worrying level that urgently call for remedial measures to set this unscrupulous activities in order.

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    Such high fees for arbitration cases are reported to be on account of sharing of the amount with those in the deciding Tribunal, the department key person, the department lawyer etc. Let us see if enquiry covers these aspects.

  • Avatar

    It’s a big case unearthed. All his clientle needs a probe who paid him cash

  • Avatar

    Without naming the culprit, what is the use of this news.

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