The Income Tax Department has found tax evasion of more than 700 rupees after recently raiding multiple locations of the Chennai-based Chettinad Group, the CBDT and official sources said Tuesday.
“The culmination of the search is the seizure of unrecorded cash amounting to Rs 23 billion in various locations,” the CBDT said in a statement.
“As of now, the department has succeeded in determining an income evasion of over 700 billion rupees,” it said.
The statement alleged that tax advisors had also discovered documents relating to the possession of “foreign assets of Rs 110 billion in the form of fixed deposits that were not disclosed in the tax return (income tax return) and investigations into illegal money will pull off action “.
On December 9, the tax officer raided 60 premises of the Tamil Nadu-based group in Chennai, Trichy (Tiruchirappalli) and various locations in Andhra Pradesh, Karnataka and Mumbai.
While the CBDT said its action and further discoveries were being carried out against a “leading group of companies operating out of Chennai based on tax evasion information,” official sources identified them as the Chettinad group, roughly 100 years old.
The group is involved in business activities such as cement manufacturing, logistics and construction, among other things, according to the CBDT.
“Inflation in spending to withdraw cash and reduce profits, revenue that has not been fully booked, and the false write-off claim of Rs.435 billion were also noted.
“There is evidence of capital fee income for medical admission to postgraduate programs,” the statement said.
The Central Board of Direct Taxes is the managing authority for the IT department.
The statement added that “details of the actual financial transaction between the searched group and another group for the sale of three infrastructure facilities in different ports have been found”. “It has also been found that complex financial arrangements have been made which, for their own reasons, create false liabilities in an attempt to allegedly reduce capital gains from this transfer,” it said. It added that capital gains of about Rs 280 were made.
“Similarly, there is also an enormous amount of capital raised by a web of fake inter-company transactions within the group under the scanner,” the statement said.
A large number of the group’s lockers have been identified as operating in due course, even if the search is temporarily completed and the investigation is ongoing.