The Central Board of Direct Taxes (CBDT) said on Friday that the Income Tax Department has seized more than Rs 16 crore in cash and detected a black income of about Rs 80 crore.
It was said that the action was part of an electoral watchdog being carried out by the department for the upcoming assembly elections in Tamil Nadu and Puducherry.
The discovery was made on 16 and 17 March in Chennai, Tiruppur and Dharapuram.
The board said in a statement, “The five premises belong to five entities which, apart from their regular business, are also acting as cash handlers. The action has resulted in cash forfeiture of Rs. 5.32 crore.”
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In another case, a search was made against the trade of yarn to various state governments and a trade group engaged in the supply of PPE kits, bags and baby care kits.
It was found, the statement alleged, that the group engaged in the practice of “suppressing” profits by increasing purchases and other expenses.
“Unaccounted income is used to invest in land and expand business,” the statement said.
“This discovery has resulted in unaccounted cash seizure of Rs. 11.50 crore and the total unaccounted income so far is Rs. 80 crore,” he said.
Polling for the Tamil Nadu Legislative Assembly with 234 seats will be held in a single phase on 6 April.
“The seizure of unaccounted cash will reduce the possibility of its use for electoral purposes and serve the purpose of free and fair voting in the state of Tamil Nadu,” the statement said.
“The Income Tax Department has stepped up its surveillance and is closely monitoring the movement of cash during the upcoming assembly elections,” he said.