"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 were detected in the search operation," IT department said. (MINT File photo )
"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 were detected in the search operation," IT department said. (MINT File photo )

IT department finds 1000 crore undisclosed income at TN jeweler's premises

A statement released by the Finance Ministry today said that unaccounted cash of 1.2 crores has been seized so far in the investigation.
ANI |
PUBLISHED ON MAR 07, 2021 06:38 PM IST

The Income Tax Department carried out searches on Thursday in premises of a leading bullion trader in Tamil Nadu and one of the biggest jewellery retailers in South India which resulted in the detection of undisclosed income of more than 1,000 crores, said the Union Ministry of Finance on Sunday.

A statement released by the Finance Ministry today said that unaccounted cash of 1.2 crores has been seized so far in the investigation.

The pieces of evidence found in the premises of the bullion trader revealed that there were unaccounted cash sales, according to the statement.

"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 were detected in the search operation," it said.

As per the statement, the evidence found in the premises of the jewellery retailer revealed that the taxpayer received and repaid cash loans from local financiers.

"The jeweller retailer had given cash loans to builders and made cash investments in real estate properties, made unaccounted gold bullion purchases, claimed wrongful bad debts and inflated wastages in the conversion of old gold to fine gold and jewellery making," the statement read.

The search operation was carried out at 27 premises located in Chennai, Mumbai, Coimbatore, Madurai, Trichy, Trissur, Nellore, Jaipur and Indore.

The investigation is underway.

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