- Search and seizure operations revealed unaccounted transactions, indicating huge tax evasion
Surat: The Income Tax department has found unaccounted cash and diamonds at the premises of a diamond manufacturer and exporter in Gujarat, as per a statement by the Central Board of Direct Taxes (CBDT).
The operation which began on September 22 covered 23 premises in Surat, Navsari, Morbi and Wankaner in Gujarat and Mumbai, was carried out following an intelligence input. The raids are still underway.
“The primary analysis of data reveals that the assessee has made unaccounted purchase and sale of small polished diamonds of about Rs 518 crore over the period.”
“The data reveals that the assessee has sold more than Rs 95 crore of diamond scrap in cash generated from its manufacturing activities, which remains unaccounted for and represents its income,” the CBDT said in its statement.
The assessee, over these years, has accounted for the sale of about Rs 2,742 crore of small diamonds in its books, against which, substantial part of purchases were made in cash, but the purchase bills were taken from accommodation entry providers, the statement added.
The group was making its “major purchases” of rough diamonds through imports and making export sales of finished bigger diamonds through its company registered in Hongkong, which is effectively controlled and managed from India only.
“The data reveals that the assessee has made purchases of Rs 189 crore and sale of Rs 1,040 crore in the last two years through this entity,” CBDT stated.
`The statement said “unaccounted” cash and jewellery worth Rs 1.95 crore has been seized during the raids and “unaccounted” diamond stock of 8900 carat worth Rs 10.98 crore has been detected.
The raid teams have seized paper as well as digital data, kept at secret locations under the custody of its trusted employees, that includes proof of unaccounted purchases and sales, accommodation entries (obtaining illegal business entries in accounts) for purchases against which cash is received, the movement of such cash and stock through angadia firms, keeping the unaccounted cash with angadias, investment of such unaccounted income for purchase of property and stock, etc for the last five years.
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