Big haul: Income tax dept raids two liquor groups, unearths undeclared income of hundreds of crores of rupees

Income Tax raids: In a major success for its anti-tax evasion operations, the Income Tax department has unearthed tax evasion on the taxable income to the tune of Rs 700 crore by two major liquor producers in Tamil Nadu. First round of raids was conducted on 55 different places located in Tamil Nadu, Kerala, Andhra Pradesh and Goa on the promoters, employees and associates of a famous liquor group of Tamil Nadu, said the ministry of finance. These raids were conducted by the Income Tax department in Chennai, Coimbatore and Thanjuvur in Tamil Nadu and also at several locations in Andhra Pradesh, Kerala and Goa during the wee hours on Tuesday. ALSO READ: Elephant in the room: Here is how the government borrowings crowd out private investment Income tax officials also caught employees of the company and tracked down a car in which they have concealed Rs 4.5 crore in cash. The Income Tax department accused the group of over-invoicing the purchase of raw materials and bottles which constituted a major portion of the cost of production. In this case, the officials unearthed the tax evasion on the taxable income of 4,00 crore over a period of six years. Income tax officials raided another liquor group in the state on Friday. In this raid, tax sleuths searched the 7 premises of the group located in Chennai and Karaikal in the state. In this case, tax officials detected tax evasion on the taxable income of Rs 300 crore, taking the total to Rs 7,00 crore. ALSO READ: Harassment fears hold back PSU banks from lending to private sector