CHENNAI: The income tax department detected Rs 700crore tax evasion by a Chennai-based group during searches of their facilities on December 9. The IT department seized Rs 23 crore of unaccounted for money and found foreign assets amounting to Rs 110 crore in the form of fixed deposits.
Searches were conducted at 60 locations in Chennai, Trichy, Coimbatore, various locations in Andhra Pradesh, Karnataka and Mumbai.
The department did not name the group.
The department said the group did not disclose fixed deposits and will attract shares under the Black Money Law. Expense inflation to withdraw cash and also to reduce profit was also identified, income was not fully accounted for, false claims of depreciation worth Rs 435 crore.
There were indications of receipts of capitation fees for medical admissions to graduate programs, IT said.
During the search, the department also found details of the actual financial transaction between the group and another group for the sale of three infrastructure facilities at various ports.
Complex financial arrangements that create false liabilities out of their own concerns were seen to reduce the capital gains arising from this transfer, the IT department said. Capital gains amounting to approximately Rs 280 crore were reached, he said.
The huge introduction of capital through a network of bogus intercorporate transactions within the group was also under IT’s scanner, the department said.
A large number of lockers belonging to the group were identified, which would be reviewed by the IT department in due course.
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