220 crore in black money after raid on Chennai based company

Transaction to the extent of 50 percent was off the books, the statement claimed (representative)


The Central Board of Direct Taxes (CBDT) said the Income Tax Department has unearthed undisclosed income of around Rs 220 crore after raiding a major tile and sanitaryware manufacturer based in Chennai.

The action was carried out on 26 February and a total of 20 campuses in Tamil Nadu, Gujarat and Kolkata were searched and surveyed.

The CBDT said in a statement that Rs 8.30 crore in cash was seized during a raid on a group engaged in the manufacture and sale of tiles and sanitaryware. The group is a “pioneer” in the tiles business in South India.

“During the search, unaccounted sales and purchases of tiles were traced. The details of the transactions were unearthed at the secret office and claimed to be software built in the cloud”.

The statement claimed that it was found that up to 50 percent of the transactions were off the books.

“Considering past business, the suppression of income could be in the range of Rs 120 crore. This is in addition to Rs 100 crore of undisclosed income presented by the group as share premium through shell companies,” it claimed.

The CBDT said, “The total undisclosed income so far is Rs 220 crore.”

The statement, released late Saturday, said the search was on.

The Central Board of Direct Taxes (CBDT), which frames the policy for the tax department, meanwhile, was fully prepared to investigate and monitor the role of money in influencing voters.

The department said it is committed to tracking the generation of unaccounted cash and its movement in Tamil Nadu and Puducherry.

Assembly elections in Tamil Nadu and Puducherry will be held in a single phase on 6 April.



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