The IT department finds a black income of 700 million rupees after the forays into the TN business group

NEW DELHI: The income tax department has detected black income of around Rs 700 crore after raiding a Tamil Nadu-based group undertaking civilian government contracts, the CBDT said Thursday.

The department also seized Rs 21 crore “unaccounted for cash” during searches.

The raids were carried out on December 14 in 15 locations in Herod and Chennai against the group which is a “main civil contractor for government works, specializing in erecting sunshades along the coasts and is also diversified in bus transport, salt management for weddings and masala food business “.

“The group has been found to indulge in the inflation of purchases and other labor contract expenses. Such inflated payments made to suppliers and subcontractors are regularly received in cash,” the Central Board of Direct Taxes (CBDT) said in a statement. ). .

The unaccounted income generated in this way comes to around Rs 700 crore, which is “reinvested” in real estate investments and business expansion, he said.

Of this, the assessee has admitted to having an undisclosed income of Rs 150 crore so far, the Board said.

The CBDT is the administrative authority of the tax department.

Source