I-T officials seize ₹3 crore from two business groups

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I-T officials seize ₹3 crore from two business groups

Siddharth Prabhakar@timesgroup.com

Chennai:05.03.2021 

Income tax department's searches on the premises of two groups of civil contractors in Ramanathapuram and Madurai districts on Wednesday resulted in detection of ₹175 crore unaccounted income and seizure of ₹3 crore unaccounted money, according to an I-T statement.

The income tax department conducted searches on 18 premises. Based on intelligence inputs about the existence of cash, which is likely to be distributed for election purposes, searches were mounted on the business groups. The action resulted in the finding of unaccounted money to the tune of ₹3 crore.

Other findings include the identification of the fact that the assessee was booking bogus expenses under various heads to reduce the profits. The declared profits were less than 2% of the turnover, when in actual accounts the profits exceeded 20%. Similarly, more than 100 subcontractors were introduced to book expenses to meet illegal payments and onmoney payments for property purchases.

These subcontractors filed returns of income from the same IP address, and for the first time ever, showed only this receipt as their sole source of income.