Rs 700 cr tax evasion by TN business group

Chennai, Dec 17 (IANS) The Central Board of Direct Taxes (CBDT) on Thursday said the Income Tax department has detected Rs 700 crore in unaccounted income by a business group based in Erode in Tamil Nadu.The CBDT also said the I-T department had seized Rs 21 crore in unaccounted cash during the search on December 14.Not naming the business group, CBDT said the Erode group is a leading civil contractor for government works, specialised in erecting sea wave breaks along the coastlines and diversified into bus transport, running marriage halls and food masala business.According to CBDT, it was found that the group indulged in inflation of purchases and other work contract expenses.Such inflated payments made to the suppliers and subcontractors are received back in cash regularly.The unaccounted income thus generated comes to around Rs700 crore, which is ploughed back into real estate investments and business expansion.Out of this, the assessee has admitted to having undisclosed income of Rs 150 crore, so far, the CBDT said.
--IANS vj/kr