On October 28, 2020, the Income Tax (I-T) Department has carried out searches at 22 premises in Coimbatore, Erode, Chennai and Namakkal in Tamil Nadu, on a group engaged in the running of educational institutions and their associates, including a civil contractor. These search operations were based on the information that fees collected from students were not fully accounted for in the regular books of accounts, which was provided to the Central Board of Direct Taxes (CBDT) officials.

“The evidence found during the search revealed that the allegations regarding suppression of fees received are true and the unaccounted receipts are siphoned off to the personal accounts of the trustees, which in turn are invested in real estate through a company,” said the board in a statement issued.

It further said, “The other shareholders of the company, viz., an architect from Tirupur and a textile businessman were also covered. Electronic devices seized during the course of search were being examined.”

CBDT also added, “During the searches in the case of the civil contractors from Namakkal, inflation of expenditure by booking bogus expenses under labour charges, material purchase, etc. has been found.”

The Central Board of Direct Taxes also confirmed by that the search operations have led to the identification of unaccounted investments and on-money payments to the extent of around Rs.150 Crores. Cash amounting to Rs.5 Crores has been seized. Some lockers are yet to be operated.

The search operations are continuing, says CBDT.

With Warm Regards,

CL Bureau.

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