TN: IT department seizes over Rs. 16 crore dubious cash
The Income Tax Department has seized "unaccounted" cash of over Rs. 16 crore and detected black income of about Rs. 80 crore after it raided multiple entities in poll-bound Tamil Nadu, the Central Board of Direct Taxes (CBDT) said on Friday. The action was part of election surveillance being carried out by the department for the ensuing assembly elections in Tamil Nadu and Puducherry.
Searches were carried out in Chennai, Tiruppur and Dharapuram
The searches were carried out on March 16 and 17 in Chennai, Tiruppur, and Dharapuram. "Five premises belong to five entities, who, in addition to their regular business, are also acting as cash handlers. The action resulted in a cash seizure of Rs. 5.32 crore," the Board said in a statement. Notably, the CBDT frames policy for the tax department.
Business group engaged in yarn trading, PPE kits also searched
In another case, a business group engaged in yarn trading and supply of PPE kits, bags, and baby care kits to state governments was also searched. The group is allegedly engaged in the practice of "suppressing" profit by inflating purchases and other expenses. "The unaccounted income so generated is utilized for making investments in land and expansion of business," the statement said.
Seizure will aid free and fair polls in the state
"The search has resulted in the seizure of Rs. 11.50 crore in unaccounted cash and total unaccounted income detected so far is Rs. 80 crore," it said. "Seizure of large unaccounted cash will reduce the possibility of its utilization for electoral purposes and will aid the objective of a free and fair poll in the state of Tamil Nadu," the statement said.
Tamil Nadu assembly polls will be held on April 6
Polls to the 234-seat Tamil Nadu assembly will be held in a single phase on April 6. "Income Tax department has stepped up its monitoring and is closely watching the cash movement during the ensuing assembly elections," the statement added.