I-T Dept. detects undisclosed income of ₹1,000 cr. during searches on two Chennai-based groups

The searches were carried out at 27 locations in different parts of the country

Published - March 07, 2021 11:57 am IST - NEW DELHI

The Income-Tax Department has so far detected undisclosed income of over ₹1,000 crore during the searches at 27 locations in different parts of the country in connection with two Chennai-based groups into bullion trade and jewellery retail business.

The searches were carried out in Chennai, Mumbai, Coimbatore, Madurai, Trichy, Thrissur, Nellore, Jaipur and Indore March 4 onwards. The agency said one of the groups under scanner was a leading bullion trader in Tamil Nadu and the other was one of the biggest jewellery retailers in the South.

“The evidence found on the premises of the bullion trader revealed that there were unaccounted cash sales, bogus cash credits from its branches, cash credits in dummy accounts in the guise of advance for purchases, unexplained cash deposits during the demonetisation period, bogus outstanding sundry creditors, and huge unexplained stock variations,” said the agency.

On the premises of the jewellery retailer, the department purportedly found that the taxpayer had received and repaid cash loans from local financiers. It had given cash loans to builders and made cash investments in real estate, made unaccounted gold bullion purchases, claimed wrongful bad debts and inflated wastages in conversion of old gold to fine gold and jewellery-making.

During the searches, the agency also seized ₹1.20 crore in unaccounted cash.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.