The Profits Tax Department has performed a search and seizure operation in Tamil Nadu and detected an undisclosed earnings of Rs 700 crore, in step with an official assertion.
The hunt became launched early on Tuesday at 55 premises in somewhat about a locations of the speak, including Chennai, Coimbatore, Thanjavur, and additionally in Kerala, Andhra Pradesh and Goa.
“The Profits Tax Department performed a search and seizure operation on August 6, 2019 in the case of one in every of the important thing producers of beer and IMFL (Indian-made foreign liquor) in Tamil Nadu,” the Union Finance Ministry acknowledged in a assertion.
The premises incorporated residences of the promoters, key workers and one of the well-known well-known suppliers of materials, it acknowledged.
In maintaining with the assertion, the hunt became in step with intelligence gathered over loads of months that the business community became indulging in big-scale tax evasion by inflating its expenditure on materials feeble in its production processes.
All over the hunt, the groups came across “telltale proof” of the modus operandi that alive to over-invoicing of rob of raw materials and bottles, which constituted a major section of the worth of production, the assertion acknowledged.
The suppliers received payment on the inflated worth by cheque or RTGS, but paid wait on the extra worth in money to key confidante workers of the community.
The hunt groups gathered proof of such over-invoicing and return of money by suppliers. Such inflation by over-invoicing amounted to suppression of taxable earnings of nearly Rs 400 crore over a interval of six years, it acknowledged.
The hunt additionally resulted in unearthing of proof of the same tax evasion by every other leading business community in the identical liquor business. Due to this, the department launched a search operation in the case of the 2nd community on Friday, the assertion acknowledged.
About seven premises of this community at Chennai and Karaikal fill been lined in the 2nd half of the hunt operation. The hunt is restful in growth and the suppression of taxable earnings detected in this community has been estimated to be about Rs 300 crore, it acknowledged.
Acting on a tip-off, the tax officers tracked down workers inviting with unaccounted money, intercepted them and recovered Rs 4.5 crore money from the automobile whereby they’d concealed it, the assertion acknowledged.
The hunt has so far resulted in detection of undisclosed earnings of Rs 700 crore, it added.
(The memoir has been printed from a wire feed with out any changes to the textual remark material)
Aug 11, 2019 12: 59 IST