Income Tax Department raided several locations related to cases related to two businesses, one involved in chit fund and financing, while the other is a retailer of silk sarees and other garments, CBDT said on Sunday. The taxman conducted searches across 34 premises located in Kanchipuram, Chennai and Vellore.
The tax department has uncovered unaccounted income to the tune of ₹250 crore from these searches, according to the Central Board of Direct Taxes (CBDT).
In the first case, the Income Tax Department found that a group was running an unauthorised chit fund business. All the investments and pay-outs, worth more than ₹400 crore, in the last few years, were done entirely in cash. Evidences revealed that the group had earned unaccounted income by way of commission and dividends, CBDT said.
“Numerous Promissory notes, signed post-dated cheques and power of attorney documents kept as collateral for the loans given or from chit subscribers have also been seized. The group had also earned unaccounted interest income from cash financing and had huge unaccounted investments and expenses," the direct tax authority further said.
The tax department also discovered many property documents registered in the names of group members and their associates. Properties owned by this group’s members include palatial homes, farm houses and lands, luxury vehicles, etc., whereas they were either non-filers or had disclosed negligible income in their tax returns, so far, as per CBDT.
“Many associates and investors of the chit fund were investigated and they have also admitted to have made unaccounted investments and earned unaccounted income," it added.
The tax department has discovered undisclosed income to the tune of ₹150 crore so far in this case. Unaccounted cash of ₹1.35 crore and about 7.5 kg gold jewellery has been seized.
In the second case related to silk saree retailer, the tax department discovered that sales figures were being manipulated for the last four years through a customised software. Group members used to take out the unaccounted cash from these manipulations, and made unaccounted investments in land and buildings.
“The group members also used to incur huge cash expenses on lavish lifestyle, give/ repay cash loans, make chit investments, etc," CBDT said.
Unaccounted cash worth ₹44 lakh and gold jewellery of about 9.5 kg has been seized in the matter. The undisclosed income detected, so far, in this group is more than ₹100 crore.
