Two Major Retail Chains In Tamil Nadu Suppress Sales To Tune Of Rs 1000 Cr To Evade Tax: I-T Dept

In the search on the two groups, the I-T Department has seized Rs 10 crore cash and other values worth Rs 6 crore.

Chennai: Two Tamil Nadu-based major retail stores suppressed the sale of products and textiles to the tune of Rs 1,000 crore for several years to evade tax, revealed the Income Tax Department after conducting raids for 7 days, on Tuesday. The Income Tax department raided the premises of Super Saravana Stores and Saravana Selvaratnam in many places across the state last week.

In the search on the two groups, the I-T Department has seized Rs 10 crore cash and other values worth Rs 6 crore.

According to ABP Nadu, the release by Surabhi Ahluwalia, Commissioner of Income Tax (Media & Technical Policy) Official Spokesperson CBDT said, “Income Tax Department conducted search operations in 37 premises of the chains in Chennai, Coimbatore, Madurai and Tirunelveli.”

In the case of the first group, the release said, “The assessee had been actively involved in systematically suppressing sales by manipulating their books of accounts and the extent of suppression of sales is found to be more than Rs 1000 crore, over a period of several years.”

The release also said that the firm made unaccounted purchases for Rs 150 crore in the textile and jewelry division for Rs 150 crore in the past few years.

In the second group, the I-T Department said, “The assessee group had obtained bogus bills from a set of parties to the tune of Rs 80 crore and thereby suppressed taxable income. Besides, the assessee group is found to be debiting inflated making charges of jewelry.”

The firm has also been involved in scraping unaccounted sale receipts to Rs 7 crore.