I-T dept detects over Rs 400-cr tax evasion after raids on liquor, hospitality group in TN

The Income Tax Department has discovered “large-scale tax evasion” of more than Rs 400 crore after a recent raid on a Tamil Nadu-based group engaged in liquor and hospitality manufacturing, CBDT reported on Monday.

The raids were launched on 15 June and over 40 buildings were covered in cities such as Chennai, Villopuram, Coimbatore and Hyderabad.

“Undisclosed cash of Rs 3 crore and undisbursed gold jewels of Rs 2.5 crore have been confiscated so far,” CBDT said in a statement.

The Central Board of Direct Taxes (CBDT) sets tax administration policy.

However, it did not specify which business group is engaged in logistics, entertainment, hospitality and liquor manufacturing.

Analysis of the confiscated digital documents and tools “indicates that the group of assessees have indulged in large-scale tax evasion in excess of Rs 400 crore by deducting non-original purchase invoices in the books of miscellaneous business accounts.”

“These non-genuine purchase invoices were obtained from either normal material suppliers or accommodation entry providers (fake business entry providers),” the statement said.

Withheld documents show that payments to suppliers of materials through checks have been received “cash” for making “uncredited” investments and also for other purposes.

“It also emerged that the group was controlling the back office operations of its international hotel chain from India,” she added.

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