I-T Dept finds Rs 700 cr unaccounted income in recent search in Tamil Nadu

Seizes cash amounting to Rs 21 cr in a search operation covering 15 premises at Erode and Chennai

During a recent search of a Tamil Nadu-based group, the Income Tax Department detected a sum of Rs 700 crore in unaccounted income and seized Rs 21 crore of unaccounted cash.

The Department carried out searches on December 14, on a group based in Erode, covering 15 premises in that city and in Chennai. 

The group is a leading civil contractor for government works, specialised in erecting Seawave breaks along the coastline. It has diversified into bus transport, food masalas and running marriage halls, according to the Department.

 

The highlight of the search is seizure of Rs 21 crore of unaccounted cash. It was found that the group indulges in inflated purchases and other work contract expenses. Such inflated payments made to suppliers and subcontractors are received back in cash regularly. The unaccounted income thus generated comes to around Rs 700 crore, which is ploughed back into real estate investments and business expansion. Of this, the assessee has admitted to having undisclosed income of Rs 150 crore, so far.

Overall, there is a detection of Rs 700 crore of unaccounted income and a seizure of Rs 21 crore of unaccounted cash as a result of this search, said the Department adding that further investigations are on.