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I-T dept raids Tamil Nadu wholesale bullion dealer, unearths undisclosed income of over Rs 500 cr

ANI | Updated: Nov 12, 2020 14:36 IST

New Delhi [India], November 12 (ANI): The Income Tax department has conducted searches at various premises in Tamil Nadu, Mumbai and Kolkata related to leading wholesale bullion and gold jewelry dealer and unearthed undisclosed income of over Rs 500 crores.
According to officials, the searches were carried out at 32 premises located in Chennai, Mumbai, Kolkata, Coimbatore, Salem, Trichy, Madurai and Tirunelveli on Tuesday.
"The searches so far have resulted in the detection of undisclosed income of more than Rs 500 crore. In fact, the assessee has made voluntary disclosures of Rs 150 crore out of the undisclosed income detected so far," the Central Board of Direct Taxes (CBDT) said in a statement.
It said an investigation into the non-business investments of the group and use of accommodation entries to reduce profits is also in progress.
"The evidences unearthed include unaccounted stock maintained by the assessee at various places. Around 814 kg of excess stock valued at around Rs 400 crore was identified and would be brought to tax. Since it is a business stock, the same could not be seized as the Income Tax Act, 1961 restrains seizure of business stock," the statement said.
"The data from the system maintained by the group shows a net income of Rs 102 crore outside books for the financial year 2018-19 alone. The data for financial years 2019-20, 2020-2021 available in the system is being culled out using forensic tools," it added.
The CBDT said the excess stock of 50 kg found in the business premises of related concerns was not seized but identified for quantification of unaccounted income.
"The group has been maintaining a custom made package called Jpac to cleverly conceal the true facts of the business. The goods were transported by raising bills/invoices as a rough estimation, which would be destroyed on delivery of goods," the statement said.
It said the data obtained will be used to unearth the unaccounted transactions of other parties and added that forensic experts using specialised tools are culling out more data to reach a final quantification of unaccounted income. (ANI)