Income Tax searches on Chennai-based group reveal tax evasion of over Rs 700 crore, cash of Rs 23 crore

The IT sleuths have identified foreign assets worth Rs 110 crore in the form of Fixed Deposits which were not disclosed in the return.

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Chennai: Search and seizure operations by the Income Tax department on a Chennai-based group involved in cement manufacturing, logistics and construction, detected evasion of income of over Rs 700 crore, along with unaccounted cash of Rs 23 crore.

According to the IT Department, the searches at 60 premises located across Tamil Nadu's Chennai, Trichy, Coimbatore and various places in Andhra Pradesh, Karnataka and Mumbai (Maharashtra) were carried out on December 9, following intelligence on tax evasion. 

ITDeptt is conducting search operation on prominent business group of Chennai having varied business activities. About 60 premises being covered across TN,Karnataka,AP &Maharashtra.
More than Rs.7crore of unaccounted cash found from key person so far. Search is still in progress. pic.twitter.com/5IuP0cg62b — Income Tax India (@IncomeTaxIndia) December 9, 2020

The IT sleuths have seized unaccounted cash of Rs 23 crore and identified foreign assets worth Rs 110 crore in the form of Fixed Deposits which were not disclosed in the return. 

Inflation of expenditure to take out cash, also to reduce profits, receipts not accounted fully, bogus claim of depreciation etc amounting to Rs 435 crore were also identified.

Besides this, there are indications of capitation fee receipts for medical admissions to post-graduate programmes. 

"During the search, details of the actual financial transaction between the searched group and another group for the sale of three infrastructure facilities at various ports were found. Complex financial arrangements creating bogus liabilities from their own concerns were also seen to be made, ostensibly, to reduce the capital gains arising out of this transfer," said the statement from IT department. 

The IT department added that capital gains amounting to approximately Rs 280 crore have been arrived at and that huge capital introduction through a web of bogus inter-corporate transactions within the said group is also under the scanner.