Karnataka: I-T dept detects Rs 1k cr bogus expenditure after raids on co-op banks

The CBDT said in a statement that cash of more than Rs 3.3 crore and jewellery worth Rs 2 crore was seized during the searches..

"The seized evidences revealed that these cooperative banks were involved in rampantly discounting bearer cheques issued by various business entities, in the name of various fictitious non-existing entities" the CBDT said.iStock..

The Income-tax department has detected "bogus" expenditure and alleged financial irregularities worth Rs 1,000 crore after it raided some cooperative banks in poll-bound Karnataka sometime ago, the CBDT said Tuesday..

"The purpose of such discounting of large number of cheques was to mask the real source of the cash withdrawal, and to enable the business entities to book bogus expenses7," it said...

These business entities were also "circumventing" the provisions of the Income Tax Act which limits the allowable business expenditure incurred other than by account payee cheque, it said.. "Bogus expenditure booked in this way by these beneficiary business entities, could be to the tune of about Rs 1,000 crore," the CBDT said...

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