CHENNAI: The Income Tax department here on Monday said they have unearthed Rs 110 Crore of undisclosed income by a distillery connected to Magunta Srinivasulu Reddy, a member of the Legislative Council of Andhra Pradesh belonging to the Telugu Desam Party.
Income Tax department officials said that after a three-day long search at the premises of Balaji Distilleries the company has admitted undisclosed income of Rs 110 crore on account of 'bogus' expenses and cash generated from it. Unaccounted cash for Rs 54.60 Cr has been recovered by the IT officials, sources said.
The searches began on Friday based on a tip off that Balaji Distilleries was evading taxes. Searches were conducted at 12 premises belonging to the director and employees of the distillery and ended on Sunday evening. IT officials said the persons from whose premises the cash was seized were unable to give any explanation about its source and the director of the company owned up the unaccounted cash.
Magunta Srinivasulu Reddy is said to be one of the promoters of the company and has a factory at Poonamallee, where the company also has its registered office. The supporters of the Magunta Srinivasulu Reddy had alleged that the IT raids in the company was a part of the political witch-hunt by the BJP-led union government. Express could not reach the company officials for a comment.
A top Income Tax official rejected the earlier reports that the Balaji Distilleries was connected with a recent seizure of smuggled gold by the Directorate of Revenue Intelligence.