Income Tax searches at the premises of a civil contractor for government works has led to the seizure of Rs.21 cr (about USD 3 million) unaccounted cash and detection fo Rs.700 cr (over USD 951 million) unaccounted income.
According to the department, the searches were carried out on December 14 and at 15 in Chennai and Erode premises. The searched group specialises in erecting seawall breaks along the coast and diversified into bus transport, running marriage halls and cooking masala business.
“It was found that the group indulges in inflation of purchases and other work contract expenses. Such inflated payments made to the suppliers and subcontractors are received back in cash regularly” read the statement from the Central Board of Direct taxes.
It also added that the Rs.700 crore unaccounted income is ploughed back into real estate investments and business expansion and that the assessee admitted to having an undisclosed income of Rs.150 cr (over 20 million) so far.
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