The Income Tax Department has detected a tax evasion of more than 700 million rupees after it recently raided several locations of Chennai-based Chettinad Group, the CBDT and official sources said on Tuesday.
“Highlights of the search include the seizure of 23 million rupees unaccounted for cash from various locations,” the CBDT said in a statement.
“As of now, the department has managed to detect revenue evasion of more than 700 million rupees,” he said.
The statement claimed that tax detectives also detected documents related to the possession of “foreign assets worth 110 million rupees in the form of fixed deposits, which were not disclosed in the statement (income tax return) and will attract actions under black money Act “.
The tax collector had raided 60 premises of the Tamil Nadu-based group in Chennai, Trichy (Tiruchirappalli), various locations in Andhra Pradesh, Karnataka and Mumbai on December 9.
While the CBDT said its action and further detections were made against a “leading business group operating out of Chennai, based on intelligence on tax evasion,” official sources identified it as the Chettinad Group in its 100s.
The group is involved in commercial activities such as cement manufacturing, logistics, construction, among others, CBDT said.
“Inflation of expenses to withdraw cash and also to reduce profit, income was not fully booked, false claims of depreciation in the amount of Rs 435 crore were also identified.
“There are indications of receipt of capitation fees for medical admissions to graduate programs,” the statement alleges.
The Central Board of Direct Taxes is the administrative authority of the IT department.
The statement added that “details of the actual financial transaction between the target group and another group for the sale of three infrastructure facilities in various ports were found.” “It was also seen that complex financial arrangements were made that create false liabilities from their own concerns, apparently to reduce the capital gains arising from this transfer,” he said. He added that capital gains have been made amounting to approximately 280 million rupees.
“Similarly, the introduction of large capital through a network of bogus intercorporate transactions within the group is also under the scanner,” the statement said.
A large number of lockers belonging to the group have been identified and will be operated in due course, even though the search has been temporarily concluded and investigations are still ongoing, he said.
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