Income Tax dept raids two TN-based retailers, claims over Rs 1000 cr sales suppressed to evade tax

Insight Online News

New Delhi, Dec 7 : The Income Tax (I-T) department has carried out search and seizure operations on two Tamil Nadu-based groups engaged in the retail sales of jewellery, textiles and home appliances through their popular chain of stores in Chennai, Coimbatore, Madurai and Tirunelveli, the department said on Tuesday.

According to a statement issued here, one of the groups suppressed sales of more than Rs 1,000 crore over a period of several years to evade tax.

The search action was carried out on December 1 and covered a total of 37 premises across the state.

“The searches have led to a seizure of Rs 10 crore cash and jewellery/bullion worth about Rs six crore. Further investigations are under progress,” said a spokesperson of the Central Board of Direct Taxes (CBDT).

CBDT is the apex policy-making body for direct taxes such as income tax and corporate tax.

The department said that in case of one of the two groups, incriminating material gathered during the course of investigation revealed that the assessee had been actively involved in systematically suppressing sales by manipulating their books of accounts.

“The extent of suppression of sales is found to be more than Rs 1,000 crore, over a period of several years. It was also found that the assessee had made unaccounted cash purchases of about Rs 150 crore in textile division and jewellery division, during the past few years,” said I-T department.

In respect of the second group, incriminating material revealed that the assessee group had obtained bogus bills from a set of parties to the tune of Rs 80 crore, thereby suppressing the taxable income.

“Evidences relating to the unaccounted purchases of gold have also been gathered. Besides, the assessee group is found to be debiting inflated making charges of jewellery. In addition, unaccounted rental receipts and unaccounted scrap sales aggregating to Rs seven crore have also been detected,” it added.


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