india

Updated: Nov 18, 2019 11:45 IST

The Income-Tax Department on Monday said its search teams have seized unaccounted cash of Rs 32.6 crore and about 10 kilograms of gold jewellery from a Tamil Nadu-based firm, which is in the business of manufacturing specialised materials supplied to the health sector in India and abroad.

“The undisclosed income of the company and its promoters is estimated at about Rs 435 crore,” the I-T department said without disclosing names of the company and its promoters. The searches were conducted in a tier-III city in the state.

“Based on intelligence that the company was indulging in substantial tax evasion, the search action was carried out covering about 20 premises, including residences, factory premises and offices,” said an I-T department statement.

The tax authorities said that the company systematically inflated its expenditure using bogus or fabricated invoices.

“By booking such non-existent expenditure in its books of account, the company and its promoters have suppressed the true income over the years. It was found that the company would pay for such bogus expenses by cheque or RTGS real-time gross settlement system and then receive the cash back,” it said.

The unaccounted income so generated has been deployed by the company’s promoters into investments in immovable properties by making unaccounted payments, further investments in the business itself as share capital and in fixed bank deposits, cash and other valuables, the statement added.