IT searches in stores selling palm oil in Tamil Nadu

The Income Tax department has started searches in stores selling cooking oil in Tamil Nadu. The searches have begun in more than 30 places across Tamil Nadu and mainly in Chennai.

According to sources, it is found that the companies did not have proper accounts for importing palm oil and had also evaded tax payments.

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“We found that these companies had not maintained any proper accounts. We have doubts that there will be tax evasion and also cash which has 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.

Palm oil is imported mainly from Indonesia, and is sold in ration shops and in private stores. “We have started the searches which will go on for a few days as we need to check all accounts and also question the people. Only after the searches are completed, will we know about the total tax evasion and unaccounted money found,” said the official.

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Recently, the department conducted searches in textile shops in various districts of Tamil Nadu.