I-T department searches Tamil Nadu education group, detects ₹150-cr tax evasion1 min read . Updated: 29 Oct 2020, 01:52 PM IST
The searches were carried out at 22 premises in Coimbatore, Erode, Chennai and Namakkal of the group and their associates, including a civil contractor
The Income Tax (I-T) department on Wednesday raided a Tamil Nadu-based group running multiple educational institutions and the action had led to detection of alleged tax evasion worth about ₹150 crore, the CBDT said today.
The searches were carried out at 22 premises in Coimbatore, Erode, Chennai and Namakkal of the group and their associates, including a civil contractor.
"The search was carried out on the basis of information that fees collected from students were not fully accounted for in the regular books of accounts," the I-T department said.
"The search has led to identification of unaccounted investments and on-money payments to the extent of around ₹150 crore. Cash amounting to ₹5 crore has been seized," it added.
"Some lockers are yet to be operated. The search is still continuing," the Central Board of Direct Taxes (CBDT) confirmed in a statement.
The electronic devices seized are also being examined, it said.
The CBDT is the administrative authority for the Income Tax (I-T) department.
"Evidences found during the search reveal that the allegations regarding suppression of fees received are true and the unaccounted receipts are siphoned off to the personal accounts of the trustees, which in turn are invested in real estate through a company.
"The other shareholders of the company, like an architect from Tirupur and a textile businessman, were also covered," it said.
In the case of raid on the civil contractors from Namakkal, inflation of expenditure by booking "bogus expenses" under labour charges, material purchase, etc. has been found, the statement added.
Two days back, the I-T department carried out a search and seizure action on a large network of individuals running the racket of entry operation and generation of huge cash through fake billing.
The search operations were conducted on 42 premises across Delhi- NCR, Haryana, Punjab, Uttarakhand and Goa.
The search has led to seizure of evidences exposing the entire network of the entry operators, intermediaries, cash handlers, the beneficiaries and the firms and companies involved. So far, documents evidencing accommodation entries of over ₹500 crore have already been found and seized.