New Delhi (17.12.2020): The Income Tax Department carried out search and seizure operations on various premises from Erode in Tamil Nadu and detected evasion of income over Rs 700 crores and seizes Rs 21 crore of unaccounted cash.

According to officials, the searches which were conducted on intelligence input about tax evasion were conducted at 15 premises on 14th December. The business group is a leading civil contractor for Government works, specialized in erecting Seawave breaks along the coastlines and diversified into bus transport, running marriage halls and food masala business.

The highlight of the search includes the seizure of uncounted cash of Rs. 21 crore from various locations. And It was found that the group indulges in inflation of purchases and other work contract expenses. Such inflated payments made to the 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. Out of this, the assessee has admitted to having an undisclosed income of Rs. 150 crore, so far.

The Central Board of Direct Taxes (CBDT) in the statement said that 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. While the investigations are still in progress in the matter.