Income Tax Department carried out search and seizure operations on 15.06.2022 on a leading industrial group of Chennai, engaged in the business of manufacturing of IMFL, logistics, hospitality, entertainment etc. The search operations were carried out at more than 40 premises located in Chennai, Villupuram, Puducherry, Coimbatore and Hyderabad.

During the course of the search operations, various incriminating documentary and digital evidences have been seized. The analysis of such evidences indicates that the assessee group has indulged in large-scale tax evasion exceeding Rs. 400 crore by debiting non-genuine purchase bills in the books of account of varied businesses. These non-genuine purchase bills were either obtained from its regular material suppliers or from accommodation entry providers. On gleaning, the seized evidences have also revealed that the payments made to the material suppliers through cheque have been received back in cash for making unaccounted investments and also for other purposes.

The group is also found to be controlling, back-office operations of its international chain of hotels, from India.

So far, the search action has led to the seizure of undisclosed cash of Rs. 3 crore and unaccounted gold jewellery worth Rs. 2.5 crore. 

Further investigations are in progress.

Tax evasion exposure uncovers use of bogus purchase bills and cash back schemes during coordinated search operations. Coordinated search and seizure operations on a Chennai industrial group uncovered documentary and digital evidence of systematic tax evasion by debiting non genuine purchase bills from suppliers and accommodation entry providers; cheque payments to suppliers were reportedly returned in cash to create unaccounted investments. The group is also alleged to have controlled back office operations for its international hotel chain from India. Initial seizures included undisclosed cash and unaccounted gold jewellery; investigations are ongoing to determine full tax consequences and identify additional corroborative evidence.