IT Department unearths Rs.400 Crore Tax Evasion after raids on Hospitality Group

On June 15, 2022, the Income Tax Department conducted a search and seizure operation on a leading industrial organisation in Chennai, which is involved in the manufacturing of IMFL, logistics, hotels, and entertainment, among other things. The search operations took place in over 40 locations across Chennai, Villupuram, Puducherry, Coimbatore, and Hyderabad.

Various incriminating documentary and digital evidences have been seized during the search activities. According to the evidence, the assessee group engaged in large-scale tax evasion totaling over Rs.400 crore by debiting non-genuine purchase bills in the books of various enterprises. These forged purchase bills were received from either the company’s normal material suppliers or the company’s accommodation entry providers. The confiscated evidences also revealed that cheque payments to material suppliers were returned in cash for making unauthorised investments and other objectives.

The group is also revealed to be running its international hotel chain’s back-office activities from India.

So far, the search operation has resulted in the seizure of Rs.3 crore in undisclosed cash and Rs.2.5 crore in unauthorised gold jewellery.

More research is being carried out.