Rs 80 crore unaccounted income detected during I-T raids on Tamil Nadu business group

CHENNAI: The Income Tax Department detected unaccounted income worth Rs 80 crore and seized cash worth Rs 11.50 crore during search operations carried out on a business group engaged in yarn trading and supply of PPE kits, bags and baby care kits to various state governments.

The searches, which were conducted in eight premises at Tirupur, Dharapuram and Chennai on Wednesday, revealed that the group is engaged in the practice of suppressing profits by inflating purchases and other expenses, according to a Central Board of Direct Taxes (CBDT) spokesperson.

The unaccounted income thus generated is utilized for making investments in land and expansion of business. Further investigations are in progress.

Seizure of large unaccounted cash will reduce the possibility of its utilisation for electoral purposes and will aid the objective of free and fair polls in Tamil Nadu. The Income Tax department has stepped up its monitoring and is closely watching the cash movement during the ensuing assembly elections, the spokesperson added.

Earlier, on Tuesday, the Income Tax Department conducted searches on five premises in Chennai. These premises belong to five entities, who, in addition to their regular business, are also acting as cash handlers. The action resulted in a cash seizure of Rs 5.32 crore, the spokesperson said in a release.