Group inflated expenses: I-T Dept.
The Income Tax Department on Thursday detected ₹700 crore in undisclosed income and seized ₹21 crore in unaccounted-for cash at the end of searches on the premises of a construction company in Erode and Chennai.
Nearly 30 officials of the Income Tax Department carried out the searches from December 14 on the offices of Sri Pathy Associates Private Limited, located on Thangaperumal Street at Kallukadaimedu, and on the houses of its three directors.
An official statement, without naming the company, said the searches were carried out on 15 premises. The group is a leading civil contractor for government works. It specialises in erecting seawalls. It is also running bus transport services and marriage halls and making food masala.
The release said the group inflated the purchase and other expenses, and the inflated payments, made to the suppliers and sub-contractors, were received back in cash.
The unaccounted-for income was invested in real estate and business expansion. The directors had admitted to having an undisclosed income of ₹150 crore.
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