CHENNAI: Undisclosed income of more than Rs 500 crore was detected during searches carried out in the premises of a leading wholesale bullion and gold jewellery dealer doing business from Chennai, the Income Tax department said on Thursday. The search operations were carried out at 32 premises in Chennai, Mumbai, Kolkata, Coimbatore, Salem, Trichy, Madurai and Tirunelveli on Tuesday.
An Income Tax department spokesperson said that during searches, the sleuths unearthed evidence including unaccounted stock maintained by the assessee at various places. Around 814 kg of excess stock of gold valued at around Rs 400 crore was identified and would be taxed.
Since it is a business stock, the same could not be seized as the Income Tax Act, 1961 restrains seizure of business stock. The data from the system maintained by the group shows a net income of Rs 102 crore outside the books for the financial year 2018-19 alone. The data for financial years 2019-20, 2020-2021 available in the system is being culled out using forensic tools. Similarly, the excess stock of 50 kg gold found in the business premises of related concerns was not seized, but identified for quantification of unaccounted income.
It is said that the group has been maintaining a custom made package called Jpac to cleverly conceal the true facts of the business. The goods were transported by raising bills or invoices as rough estimation, which would be destroyed on delivery of goods. The data so obtained will be used to unearth the unaccounted transactions of other parties based on the data extracted. Forensic experts using specialised tools are culling out more data to reach a final quantification of unaccounted income, a release from the Income Tax department stated.
The assessee has made a voluntary disclosure of Rs 150 crore. Investigation into the non-business investments of the group and use of accommodation entries to reduce profits is also in progress, the release added.