The Finance Ministry has said that the Investigation Wing of the Income Tax Department at Chennai has been investigating a group of firms at Chennai and Tiruchi based on “credible information of tax evasion and large scale financial irregularities”.
The group of firms is understood to be associated with Karti Chidambaram, son of former Finance Minister P Chidambaram.
“There is no collateral purpose behind such actions and no political person or his family member are today shareholders or directors of the companies searched or surveyed by the Income Tax Department,” said a release by the Central Board of Direct Taxes (CBDT) on Tuesday.
The CBDT said that it has found incriminating evidence indicating tax evasion and financial irregularities during the investigations. “Further action as per law will follow,” it said.
Tax authorities also carried out search and survey operations at the residential and business premises of the key functionaries of the group on Tuesday. They also conducted surveys at the business premises of another private company in Chennai which has shareholding in the group.
Chidambaram reactsPTI adds: If govt wants to target me, it should do so directly, said P Chidambaram on raids in some places connected with his son Karti’s associates. My family and I are quite prepared to face the “malicious onslaught” launched by government, said Chidambaram.