Tax evasion unearthed in two educational institutions

Chennai, May 5 (UNI) The Income Tax department has unearthed huge tax evasion during search and survey operations in 19 premises of two educational institutions in Kanyakumari and Tirunelveli districts.

In a release here today, Income Tax Director (Investigation) Suresh C Kabra said a 150-member team effected the raid, which commenced yesterday and concluded early today.

He said in the case of a trust running medical, dental and nursing colleges, the search yielded incriminating documents to show that the assessee trust had not reported receipts to the tune of Rs 20 crore to the department in the last six years. The search also found prima-facie evidence of under reporting of the value of the assets of the trust as well as that of the trustees to the extent of around Rs 26 crore. Unaccounted cash of Rs 13.5 lakh was also seized, he added.

Mr Kabra said the operation revealed discrepancies and improper accounting with regard to donation receipts in the case of another trust running engineering colleges at Tirunelveli and Nagercoil. It was also found that massive cash deposits were made from unknown sources. A textile shop run by the same group showed discrepancies in stock to the tune of about Rs 75 lakh.

Several documents indicating unaccounted income and investments have been seized during the raid and further investigations were on to quantify the extent of tax evasion, he said.

UNI