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I-T dept raids two Chennai financing groups

PTI New Delhi | Updated on September 25, 2021

Finds over ₹300-cr black money

The Central Board of Direct Taxes (CBDT) on Saturday claimed that the Income Tax Department has detected “unaccounted” income of over ₹300 crore after it raided two private syndicate financing groups in Chennai.

The searches were carried out on September 23 at 35 premises in the capital city of Tamil Nadu.

“The searches, so far, have resulted in the detection of undisclosed income of more than ₹300 crore; and unaccounted cash of ₹9 crore has been seized,” the CBDT said in a statement.

Evidence found in the premises of the financiers and their associates revealed that these groups have lent to various big corporate houses and businesses in Tamil Nadu, a substantial portion of which is in cash, it said.

High interest rates

The department detected that the groups “are charging high rates of interest, a part of which is not offered to tax”.

“The modus operandi adopted by the groups revealed that most of the interest payments by borrowers are received in dummy bank accounts and the same has not been disclosed for tax purposes,” the policy-making body for the tax department said.

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The “unaccounted monies” are disguised and brought into the books of account of the groups as unsecured loans, sundry creditors, etc, the CBDT alleged.

Numerous undisclosed property investments and other income suppression by these persons were also found, it said.

Published on September 25, 2021

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