I-T dept raids 22 locations in Tamil Nadu, identifies unaccounted investments

New Delhi [India], October 29 : The Income Tax department carried out searches at 22 premises in Tamil Nadu on a group running educational institutions and identified unaccounted investments and on-money payments of around Rs 150 crore, officials said on Thursday.
According to officials, searches were conducted at 22 premises in Coimbatore, Erode, Chennai, and Namakkal on Wednesday, in which Rs 5 crore cash was seized.
"The Income Tax Department has carried out searches on October 28 at 22 premises in Coimbatore, Erode, Chennai, and Namakkal on a group engaged in the running of Educational Institutions and their associates, including a civil contractor. The search was carried out on the basis of information that fees collected from students were not fully accounted for in the regular books of accounts," the Central Board of Direct Taxes (CBDT) said in a statement.
The CBDT said that evidence found during the search reveals that the allegations regarding suppression of fees received are true and the unaccounted receipts are siphoned off to the personal accounts of the trustees, which in turn are invested in real estate through a company.
"The other shareholders of the company, including an architect from Tirupur and a textile businessman were also covered. Electronic devices seized during the course of search are being examined," the statement said.
"During the searches in the case of the civil contractors from Namakkal, inflation of expenditure by booking bogus expenses under labour charges, material purchase, etc has been found. The search has led to the identification of unaccounted investments and on-money payments to the extent of around Rs 150 crore. Cash amounting to Rs.5 crore has been seized. Some lockers are yet to be operated," it added.