I-T raids city-based group, detects Rs 700cr tax evasion

Chennai: The income tax department detected Rs 700 crore tax evasion by a Chennai-based group during searches on its premises on December 9. The department seized Rs 23 crore unaccounted money and found foreign assets to the tune of Rs 110 crore in the form of fixed deposits.

The searches were conducted on 60 premises in Chennai, Trichy, Coimbatore, various places in Andhra Pradesh, Karnataka and Mumbai. The department did not name the group.

The department said the group did not disclose the fixed deposits and this would attract action under the Black Money Act. Inflation of expenditure to take out cash and also to reduce profits, receipts not accounted fully, bogus claims of depreciation amounting to Rs 435 crore were also identified.

There were indications of capitation fee receipts for medical admissions to postgraduate programmes, IT said.

During the search, the department also found details of actual financial transaction between the group and another group for sale of three infrastructure facilities at various ports.

Complex financial agreements creating bogus liabilities from their own concerns were seen to be made to reduce the capital gains arising from this transfer, the I-T department said. Capital gains amounting to approximately Rs 280 crore were arrived at, it said.

Huge capital introduction through a web of bogus inter corporate transactions within the group were also under IT’s scanner, the department said.

A large number of lockers belonging to the group were identified, which would be checked by the I-T department in due course.