I-T Dept Raids Tamil Nadu, Unearths ₹1,000 Crore Unaccounted Cash

I-T Dept Raids Tamil Nadu, Unearths ₹1,000 Crore Unaccounted Cash

The Income Tax department has conducted searches at five locations in Chennai and Madurai in the case of a Chennai-based group operating in the IT Infra sector and unearthed unaccounted cash of around ₹1,000 crore, according to a news release issued on Saturday.

The search conducted on 6 November led to the unearthing of evidence relating to investments in a Singapore registered firm, as per a statement issued by the Central Board of Direct Taxes.

"The shareholding of this company is held by two companies, one owned by the group searched, while the other company is a subsidiary of a major infrastructure development and financing group. It has been found that the company belonging to the searched group has invested a nominal amount although it has 72 per cent shareholding, while the other company having 28 per cent shareholding has invested almost the entire money," the statement added.

The CBDT also said that this has resulted in a benefit of almost Singaporean dollars 7 crore, which is around ₹200 crore, in the hands of the firm belonging to the searched group, which was not disclosed by it in its return of income and also in the FA Schedule.

Thus, there is a suppression of foreign income received in the form of share subscription equivalent to ₹200 crore, which is taxable in India in the hands of the shareholder. Further, proceedings will be initiated under the Black Money Act, 2015 for not disclosing foreign assets/beneficial interest in the FA Schedule of the income tax return," the statement said.LM