Income tax raid: Income tax service conducts searches and seizures in Gujarat and Tamil Nadu
In Tamil Nadu, 35 premises belonging to two private union fundraising groups were raided on September 23, leading to the detection of undisclosed income of over Rs 300 crore.
In Gujarat and Mumbai, 23 premises belonging to a major diamond manufacturer and exporter that also has a tile-making business were raided on September 22, uncovering over Rs 160 crore in unrecorded income. .
“The highlight of the search includes the seizure of a large volume of unaccounted for data seized in paper and digital form, which was kept in secret locations under the custody of his trusted employees in Surat, Navasari, Mumbai,” said the Council.
The data includes proof of unaccounted for purchases, unaccounted sales, taking accommodation entries for purchases for which money is received, the movement of that money and actions through businesses angadia, the conservation of unrecorded money with angadias, the investment of this unrecorded income for the purchase of goods and stock, etc. over the past five years, the Council added.
Primary analysis of the data reveals that the appraised person made unrecorded purchases and sales of small polished diamonds of approximately Rs. 518 crore during the period, the council said, adding that more than Rs. 95 crore Diamond scrap was sold in cash generated from its manufacturing activities, which has yet to be accounted for and represents its revenue.
The appraised, during these years, represented a sale of around Rs. 2,742 crore of small diamonds on his books, against which a substantial part of the purchases was made in cash, but the purchase invoices were levied on hosting providers, the council said.
In addition, the appraised company also made its major purchases of rough diamonds through imports and export sales of larger finished diamonds through its Hong Kong registered company, which is effectively controlled and managed. from India only. The data reveals that the appraised person has made purchases of Rs. 189 crore and sales of Rs. 1,040 crore in the past two years through this entity.
“During the search, the full financial transactions of real estate transactions were found which led to the detection of unrecorded income of Rs. 80 crore. In addition, share sale transactions relating to the tiles business were examined, which led to the detection of Rs. 81 crore of unrecorded revenue, ”the board said.
During the search operation, unrecorded silver and jewelry of Rs 1.95 crore were seized, and an unrecorded stock of diamonds of 8,900 carats valued at Rs 10.98 crore has been detected so far, the council said, adding that a large number of lockers belonging to the group have been identified, which have been placed under duress and will be exploited in due course.
In Tamil Nadu, the search operation revealed evidence that union fundraising groups have loaned to various large corporations and businesses in Tamil Nadu, a substantial portion of which is in cash.
“During the search, it was detected that they were charging a high interest rate, part of which is not offered for tax. The modus operandi adopted by the groups revealed that most of the interest payments by borrowers are received in fake bank accounts and that the same has not been disclosed for tax purposes, ”the council said.
In addition, unrecorded funds are disguised and carried in the groups’ books of accounts as unsecured loans, sundry creditors, he added. The Commission said other evidence found during the search revealed numerous undisclosed real estate investments and other loss of income by these people.
“The searches so far have detected undisclosed income of over Rs. 300 crore. Unrecognized cash of Rs. 9 crore has been seized so far, ”the board said.