Jewellers in Mangaluru get notice from I-T Department

Various jewellery stores, which utilised the demonetisation announcement on Tuesday night to sell off jewellery beyond midnight in exchange of notes in the denomination of Rs. 500 and Rs. 1,000, are now facing the heat from the Income Tax Department.

Jewellery stores at many places in the State, including Mangaluru, did a brisk business on Tuesday night by remaining open beyond midnight against the normal working hours of 8 p.m. People who reportedly had wads of Rs. 500 and Rs. 1000 notes thronged these shops to buy gold. Those coming out of some shops in Mangaluru reportedly covered their faces to escape the waiting media.

Sources in the Income Tax Directorate (Intelligence and Criminal Investigation) told

The Hindu that the directorate had issued notices to these firms seeking details.

There were reports that ornaments were sold at escalated prices to cash in on the situation. “We have asked certain details from them, including the volume of transaction, details of buyers and other such things,” sources said. The directorate had particularly sought details of transactions above Rs. 5 lakh made during this period, sources added.

The directorate has issued similar notices to over 600 jewellery stores in 25 cities across the country.

They did a brisk business on Tuesday night by remaining open beyond midnight