Unearned income of Rs 450 crore revealed in raids against two groups in Tamil Nadu

38

The Income Tax Department raided the locations of the Tamil Nadu-based IT SEZ developer, its former director, and stainless steel supplier to find the undisclosed income of Rs 450 crore.


The income tax department took action on 16 premises in Chennai, Mumbai, Hyderabad, and Cuddalore on 27 November

The Central Board of Direct Taxes (CBDT) on Sunday said that the raids were conducted on November 27 at 16 premises in Chennai, Mumbai, Hyderabad, and Cuddalore. The CBDT said in a statement that in the case of the former director of the Information Technology Special Economic Zone (CBDT), income tax authorities have disclosed that he and his family members have earned Rs 100 crore in the last three years.


The raids also revealed that the IT SEZ developer also claimed about Rs 160 crore for fake work in the project under construction. Also, in the ongoing project, it claimed to have about 30 crore rupees in the account of fake consultancy fee and 20 crore rupees in the name of unacceptable interest expenses.


The CBDT also found that the developer also conducted share purchase transactions and these shares were sold by the erstwhile shareholders, a resident, and a non-resident company. This led to an investment of around Rs 2,300 crore in the financial year 2017-18 through Mauritius but the capital gains of this sales transaction were not reported to the department. In the case of a Chennai-based stainless steel supplier, it was found that the group made three sales.

It was declared, undeclared, and partially declared. The value of unannounced and partially declared sales was more than 25% of the total sales every year. The group paid sales facilitation fees to various consumers and earned a commission of over 10 percent on these transactions. Undisclosed income is being assessed and is approximately Rs 100 crore.