IT Department Discovers Over 400 Crores Of Tax Fraud In Tamil Nadu

The Central Board of Direct Taxes announced on June 20 that the Income Tax department discovered a "large-scale tax evasion" of over Rs 400 crore after raiding a Tamil Nadu-based firm engaged in liquor manufacturing and hospitality.

The raids began on June 15 and included more than 40 locations in cities including Chennai, Viluppuram, Coimbatore, and Hyderabad.

The CBDT mentioned in a statement till now, a total of Rs 3 crore in undisclosed cash and Rs 2.5 crore in unaccounted gold jewellery has been confiscated. The tax department's policy is set by the Central Board of Direct Taxes.

However, the logistics, entertainment, hospitality, and liquor manufacturing industry groups were not identified.

According to a review of the seized documents and digital devices, the assessee group has engaged in large-scale tax evasion surpassing 400 crore by debiting non-genuine purchase invoices in the books of account of several enterprises.

The statement added that these forged purchase bills were received from the company's normal material suppliers or accommodation entry providers. Payments made to material suppliers via cheques were returned in "cash" for making "unaccounted" investments and other objectives, according to the confiscated records.

It added that the group is also revealed to be running its international chain of hotels' back-office activities from India.