New Delhi, Oct 30, Oct. 30 -- The Income Tax Department carried out searches in the cases of four prominent contractor groups based in Patna, Bhagalpur, Hilsa, and Katihar on Thursday. In addition, surveys were also conducted on some traders of mined rocks in Gaya.

According to the Central Board of Direct Taxes (CBDT), the search operation were conducted as all the four groups were have found to have been evading taxes by inflating expenses for the supply of material and labour.

In one case payments have been made to various parties without any evidence of having received any services or supplies.

Payments made to bogus parties were received back as an unsecured loan or sometimes withdrawn in cash. Such loans are of about Rs. 10 crore,...