New Delhi, Jul 12 (PTI) The Income Tax Department has detected "undisclosed" income of more than Rs 500 crore after it recently raided two Tamil Nadu-based business groups engaged in real estate advertising and civil contracts, the CBDT said Tuesday.

The searches were carried out at over 40 premises in Chennai, Coimbatore and Madurai on July 6.

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Preliminary examination of seized documents and digital devices indicates that both these groups have been "suppressing" their taxable income by claiming bogus purchases and expenses in their books of account over the last few years, the CBDT said in a statement.

The Central Board of Direct Taxes (CBDT) is the administrative body for the Income-tax department.

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In case of one group, it has been found that the payments made for these bogus purchases etc., were being received back in cash by the group, it said.

"Also, evidences have been found indicating suppression of huge income on account of sharing of profits in joint ventures, which is not reflected in the regular books of accounts," the statement said.

In the case of the second group, the department found the group created a number of "bogus" entities which were being used for claiming bogus purchases and sub-contract expenses.

"Secret hideouts, maintained by the group for keeping documentary and electronic records in respect of such unaccounted and bogus transactions, were also discovered by the search team," it said.

The undisclosed income of the groups detected so far is estimated at more than Rs 500 crore, the CBDT said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)