I-T dept. detects ₹435-cr undisclosed income after raids on TN firm


The company has systematically inflated its expenditure using bogus or fabricated invoices, sources said

The income tax department has detected alleged undisclosed income of ₹435 crore after it raided a Tamil Nadu-based company, the CBDT said on Sunday.

Unaccounted cash of ₹32.6 crore and about 10 kgs of gold jewellery has been seized during the search operations that were launched on November 15 at twenty premises in “a tier 3 city of Tamil Nadu”, it said without disclosing the exact locations.

“The company is in the business of manufacturing certain specialised materials which are supplied to the health sector in India and abroad,” the CBDT said in a statement.

The Central Board of Direct Taxes is the policy-making body for the I-T department

It said the company, which was not identified, was “indulging in substantial tax evasion”.

“The major finding of the search action is that the company has systematically inflated its expenditure using bogus or fabricated invoices.

“By booking such non-existent expenditure in its books of account, the company and its promoters have suppressed the true income of the company over the years,” it said.

It wars found, the CBDT said, that the company would pay for such bogus expenses by cheque or RTGS and then receive the cash back.

“The unaccounted income so generated has been deployed by the company’s promote₹ into investments in immovable properties by making unaccounted payments, further investments in the business itself as share capital and in fixed bank deposits, cash and other valuables,” it said.

The undisclosed income of the company and its promoters is estimated at about ₹435 crore, it said.

Further enquiries are in progress, the statement said.

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Printable version | Dec 9, 2019 10:12:54 AM |

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