After two days of raids on the premises of noted ceramic tiles manufacturer KAG Tiles, based in Chennai, the Income Tax department found that the group had an undisclosed income worth Rs 220 crore. The details were found in a secret accounting software maintained in the cloud by the Income Tax sleuths.
During the raids, it was found that the transactions to the extent of 50 per cent were out of books, the department said in a press statement. “Considering the previous turnover, the suppression of income may be in the range of Rs 120 crore. This is in addition to Rs 100 crore of undisclosed income introduced by the group as share premium through shell companies,” the note claimed.
The press release from the Central board direct taxes said that Rs 8.30 crore cash was seized during the raids on the business group engaged in the business of manufacture and sale of tiles and sanitaryware.
The raids were was carried out on February 26 and a total of 20 premises in Tamil Nadu, Gujarat and Kolkata were searched and surveyed by the taxmen.
In the course of the search, unaccounted sale and purchase of tiles were detected. Details of unaccounted transactions were unearthed in the secret office and the software maintained in the cloud, the release noted.