Raids on two TN groups: I-T department unearths undisclosed income of Rs 1,000 crore

Income Tax sleuths have found undisclosed income of over Rs 1,000 crore and seized unaccounted cash of Rs 1.2 crore from two Chennai-based groups – a bullion trader and a jewellery chain spread across India -- during recent raids at their premises.

The searches were carried out at 27 premises belonging to the two firms in Chennai, Coimbatore, Mumbai, Madurai, Thrissur, Nellore, Indore, Jaipur, and Tiruchirapalli on March 4. During the searches, it was found that the two companies have evaded tax to the tune of Rs 1,000 core and the teams seized Rs 1.2 crore in cash from their premises.

The evidences found in 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 demonetization period, bogus outstanding sundry creditors, and huge unexplained stock variations, the Income Tax department said.

Officials said the jewellery retailer claimed wrongful bad debts and inflated wastages in conversion of old gold to fine gold and jewellery making to evade tax.

“The evidences found in the premises of the jewellery retailer revealed that the taxpayer received and repaid cash loans from local financiers; had given cash loans to builders and made cash investments in real estate properties,” the I-T department said.