The Income Tax Department announced on Wednesday that it had discovered undisclosed income of around Rs 400 crore after raiding some entities in poll-bound Tamil Nadu that handle "big" cash and have offshore connections. The operation took place in 20 locations around Chennai, Coimbatore, Salem, Virudhunagar, and Theni.
Cash deposits of more than Rs. 100 crore were made through various entities in the name of sale and purchase of agricultural commodities, despite the fact that no such operation occurred and no stock was found, according to evidence found in the searched premises. Employees were found to have fabricated the selling and purchase invoices.
Furthermore, sales and stock were dispersed among group entities in order to artificially inflate turnover in order to receive bank loans. Many of these businesses have yet to file a tax return.
While a group entity earned Rs. 150 crore from a foreign entity via a debenture issue, evidence discovered during the search revealed that this was a fake transaction, with all of the money going to these individuals' personal accounts. Furthermore, the group entities imported spices and over-invoiced the expense by approximately Rs. 25 crore.
Money was syphoned off from India and transferred to personal accounts in other countries to this extent.
So far, unaccounted cash totalling Rs. 50 lakh, jewellery totalling Rs. 3 crore, and nine luxury cars totalling Rs. 12.5 crore have been seized.
During the search, evidence was discovered indicating that numerous immovable properties in prime locations in Chennai and other towns in Tamil Nadu had been purchased for less than circle rates in the previous 3-4 years. In addition, many of these assets were not disclosed in the IT returns.
During the scan, more than 25 luxury cars were discovered, many of which were unaccounted for. Proof of secret international bank accounts, foreign credit cards, and investments in foreign companies has also been uncovered.
So far, the searches have revealed hidden profits totalling about Rs. 400 crore. Investigations under the Black Money Act will be conducted as well.