Income Tax Raid: Income Tax officials have detected sham transactions worth Rs 700 crore involving two liquor companies in Tamil Nadu. While the raids were conducted at 55 places linked to a major beer and IMFL manufacturer in Tamil Nadu on Tuesday, the next round of raids came on 7 places linked to another liquor manufacturer in the state on Friday. Total value of undisclosed taxable income in these two rounds of raids is estimated at Rs 700 crore, said income tax department.
The department also conducted raids in Andhra Pradesh, Karnataka, Goa and Kerala linked to the first group.
“The modus operandi involved over-invoicing of purchase of raw materials and bottles… The suppliers received payment at the inflated value by cheque or RTGS, but paid back the excess value in cash to key confidante employees of the group.” said the Central Board of Direct Taxes.
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In this case, the income tax officials also tracked down a car used by the employees of the company which was used to conceal Rs 4.5 crore in cash. The officials recovered the cash from the car.
Another group raided by Income Tax sleuths is also linked to wine business.
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“The department launched search operation in the case of the second group on August 9, 2019. About seven premises of this group at Chennai and Karaikal were covered. The suppression of taxable income detected in this group has been estimated to be about Rs 300 crore,” the statement said.
These two groups are believed to be linked to a politician in the state. However, income tax department has not named them in its official statement.
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