The Income-Tax Department has detected concealment of income to the tune of ₹700 crore from a leading city-based business group during searches held on December 9. Though the department did not disclose the group’s name in its press release, searches were held that day at the Chettinad Group’s 60 premises across Chennai, Tiruchirappalli, Mumbai, Coimbatore, and in Andhra Pradesh and Karnataka.
The press release said unaccounted cash of ₹23 crore from various locations was seized. Foreign assets of ₹110 crore in the form of fixed deposits were also found during the search. This was not disclosed in the group’s I-T return, and will attract action under the Black Money Act.
Inflation of expenditure to take out and also reduce profits, receipts not accounted fully, and bogus claim of depreciation amounting to ₹453 crore were also identified. There are indications of capitation fee receipts for medical admissions to postgraduate programmes, the release said.
Port deal documents
During the search, details of the actual financial transaction between the searched group and another group for the sale of three infrastructure facilities at various ports were found.
Complex financial arrangements creating bogus liabilities from their own concerns were also seen to be made, ostensibly, to reduce the capital gains arising out of this transfer. Capital gains amounting to around ₹280 crore have been arrived at.
Similarly, huge capital introduction through a web of bogus inter-corporate transactions within the group is also under the scanner.
A large number of lockers belonging to the group have been identified, which will be opened in due course. The search has been temporarily concluded and investigations into the findings are in progress, the release said.
Meanwhile, Anjani Portland Cement Ltd, a subsidiary of Chettinad Cement Corporation Pvt Ltd, in a communication to the BSE on December 11, said the I-T Department had carried out a search at its registered office in Mumbai, Corporate Office in Hyderabad and factory at Chintalapalem (village), Suryapet district, Telangana, under Section 132 of the Income Tax Act, 1961, from December 9 to December 11, 2020.