The Income Tax department on October 14, 2020, raided 38 locations in Delhi and Haryana in connection with charges of alleged tax evasion involving advocate Manoj Kumar Singh, who specializes in commercial arbitration and alternate dispute resolution.
Central Board of Direct Taxes (CBDT) that frames policy for the tax department in a statement said that cash amounting to Rs 5.5 crore has been seized during the searches carried out.
The Ministry of Finance Press Release issued by Press Information Bureau (PIB) on October 15, 2020, disclosed this tax evasion.
The website of advocate Manoj Kumar Singh’s law firm shows that he represents clients in cross-border financial disputes and investment disputes and has specialization in commercial arbitration and alternate dispute resolution.
According to the Central Board of Direct Taxes (CBDT) advocate, Manoj Kumar Singh was suspected to be receiving substantial amounts in cash from his clients to settle their disputes.
The department recovered Rs 3.5 crore cash, incriminating documents pertaining to unaccounted cash transactions and investments made by him over several years during its searches.
The Central Board of Direct Taxes (CBDT) further said that his ten bank lockers have been put under restraint.
The Central Board of Direct Taxes (CBDT) alleged that the lawyer in one case had received Rs 117 crore from a client in and he had shown only Rs 21 crore in his records which were received through cheque.
The Central Board of Direct Taxes (CBDT) claimed that 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.
Authorities of Central Board of Direct Taxes (CBDT) further said “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. Evidence recovered indicate an investment of more than Rs 100 crore in cash in several properties in posh areas in the last two years’’
The Central Board of Direct Taxes (CBDT) has also recovered substantial digital data reflecting unaccounted transactions of advocate Manoj Kumar Singh and his associates, who are financers and builders.
The Central Board of Direct Taxes (CBDT) said "The assessee (Singh) and his associates have also purchased several schools and properties, for which more than Rs 100 crore was "paid in cash."
According to the Central Board of Direct Taxes (CBDT), the advocate had also taken accommodation entries (hawala funds) worth several crores.
Further investigations in the case are still in progress.