9911796707
TMI BlogIncome Tax Department conducts search on an Educational Group in ChennaiX X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Department conducts search on an Educational Group in Chennai X X X X Extracts X X X X X X X X Extracts X X X X ..... rch action under the Income-tax Act, 1961 in the case of a group of trusts that are running educational institutions in and around Chennai for the past thirty years. The institutes run by the group include a number of engineering colleges, polytechnic institutes, dental college, nursing colleges, hospitals & schools. The group has interests in other sectors like fishing harbor, cement, milk, bottl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed water and iron & steel etc. There were reports of the group accepting fee/donations in cash, which were largely unaccounted and of the funds of the trust being diverted to other sister concerns. The action began on 7/11/2019 covering 32 premises in and around Chennai. During the search proceedings, evidence of suppression of fee receipts has been found. In addition, one group entity has adopte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the modus operandi of showing the actual fees received as 'advance fee collection' in the liability side of the balance sheet and advancing the said amounts as payments , mainly, to its sister concerns against certain expenses/purchases, which were found to be inflated/ bogus. Thus, the money of the trusts is found to be diverted outside the trusts for the objects outside the scope of Trust. Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... art from the above, evidences have been found of unexplained cash debits, unrecorded cash expenditure, suppression of sale receipts in fishing harbor, loans advanced in cash, non-disclosure of income from sale of property etc. Cash of approximately ₹ 5 crore and Jewelry of more than about ₹ 3 crore was seized in the said action. The preliminary estimate of the undisclosed income of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... group detected so far is more than ₹ 350 crore. The search proceedings have been temporarily concluded and investigations into the findings are in progress.
(Surabhi Ahluwalia)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT. X X X X Extracts X X X X X X X X Extracts X X X X
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