New Delhi: The Income Tax Department conducted a search and seizure operation on two groups of civil contractors on 3 March 2021 in the southern Tamil Nadu region.
As part of this search and investigation operation, raids were conducted at 18 places, mainly in Madurai and Ramnad districts. These business groups have been raided and searched on the basis of intelligence gained in connection with the large amount of cash. Three crore rupees of cash has been seized in the search which has been seized.
Apart from this, evidence has also been found that various types of fake expenses have been displayed to reduce profits. The business group showed profits of less than 2% of the total turnover, while real accounts were found to have profits of more than 20%. 100 subcontractors have been included to show wrongful expenses to justify illegal payments. Cash payment is also included for property purchases. These contractors filed their income tax returns from the IP addresses of these business groups and showed the receipt of such income tax returns once filed as the sole source of income.
Unaccounted income of 175 crores has been revealed during the raid campaign. 3 crore cash was recovered which has been seized. Further investigation is underway.