CHENNAI/ERODE: The Income Tax Department searches in 15 premises of a private firm in Erode and Chennai have revealed unaccounted income to the tune of Rs 700 crore. Around Rs 21 crore of unaccounted cash was seized during the raids.
An I-T spokesperson said that the firm is a leading civil contractor for government works, specialising in erecting seawave breaks along coastlines. The firm is also into bus transport, marriage halls and food masala businesses.
“It was found that the group inflated purchases and work contract expenses. Such inflated payments made to the suppliers and subcontractors were received back in cash regularly. The unaccounted income they generated this way comes to around Rs 700 crore, which was then ploughed back for real estate investments and business expansion.
The assessee has admitted to having undisclosed income of Rs 150 crore so far,” said a statement from the department. The four-day search concluded on Thursday. The release added that further investigation is in progress.