CHENNAI: Two educational trusts in the southern districts have come under the Income Tax scanner for tax evasion.

In a search and survey operation conducted over the last two days, the department's investigation team claimed to have found evidence that the trusts, running educational institutions in Kanyakumari and Tirunelveli districts, misrepresented the value of their assets and donations.

Several documents relating to income and investments have been seized along with a large sum of unaccounted cash.

Further investigations are on to quantify the extent of the evasion.

According to a press release issued by Suresh C. Kabra, Director of Income Tax (Investigation) in Chennai, 150 personnel were involved in the search operation, which covered 19 premises between 8.30 am on Friday and 4 am on Saturday.

In the case of a trust running medical, dental and nursing colleges, the department is looking into its failure to report receipts worth Rs. 20 crore in the past six years. The operation also uncovered prima facie evidence of the value of the assets of the trust and its trustees to the tune of Rs. 26 crore. Unaccounted cash to the tune of Rs. 13.5 lakh was seized, the release said.

In the case of a trust running engineering colleges at Tirunelveli and Nagercoil, the search revealed discrepancies and improper accounting of donation receipts. Large cash deposits from unknown sources were also discovered. At a textile shop run by the same group, the investigators found discrepancies in stock to the tune of Rs. 75 lakh, the release said.

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