Income Tax officials conducted surprise searches on major suppliers of pulses and palm oil to Public Distribution System (PDS) shops in Tamil Nadu.
According to highly placed sources in the Income Tax Department, around 40 locations linked to Arunachala Impex, Kamatchi & Co, Hira Traders, Best Dhall Mill, and Integrated Service Point, mostly located in and around Chennai, were searched.
The sources said that searches were conducted in all these companies, and the department found that these companies did not maintain proper accounts, and also evaded tax payments.
“We found that proper accounts were not maintained by these companies. We also suspect that there’s been tax evasion and cash which have not been shown in the accounts. Based on these doubts, as per the IT Act, we have started the searches,” said a senior IT official, who did not wish to be named.
Palm oil is imported mainly from Indonesia and is sold in ration shops as well as in private stores. “We have started the searches and it will go on for a few days, as we need to check all accounts and also question people. Only after the searches are completed will we know the total amount of tax evasion and unaccounted money,” said the IT official.
Recently, the Tamil Nadu government blacklisted a few contractors, including Arunachala Impex, which was responsible for producing Pongal gift hampers for Tamil Nadu Civil Supplies Corporation. This action came followed complaints from the public about the substandard quality of rice, jaggery, and other items in the hamper.
News18 Tamil Nadu could not reach out to the companies named or lawyers for comment as the searches are ongoing.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
