The Income Tax Department has detected undisclosed transactions of more than Rs 1,400 crore after raiding a jewellery firm and two real-estate developers based in Jaipur, the CBDT said on Thursday.
The search and survey operation was carried out on January 21 at a total of 31 premises of these entities.
Describing the alleged tax evasion modus operandi deployed by one of the raided entity, a developer and coloniser in Rajasthan’s capital Jaipur, the CBDT said “complete details” of unaccounted transactions of this group for the last 6-7 years were “hidden” in the basement of the main business premise.
“During the search, a plethora of incriminating documents and digital data in the form of unaccounted receipts, unexplained development expenses, unexplained assets, cash loans and advances, on-money receipts were found and seized.”
“Total unaccounted transactions amounting to Rs 650 crore have been detected, so far in this group,” it said in a statement.
The other real estate group is involved in the development of commercial centres, farm houses, townships and residential enclaves.
“It was found that the assessee group had taken over a real-estate project at the airport plaza by showing an investment of Rs 1 lakh only in the books of account whereas the WIP (closing stock) pertaining to the project reflected in the balance sheet was found to be about Rs 133 crore,” the statement alleged.
It said “substantial income” from various affordable housing schemes run by the assessee had not been disclosed in the returns of income, the complete documents of which were seized from the searched premises.
“The group had also advanced unaccounted cash loans to various persons amounting to Rs 19 crore and is also earning unaccounted interest on the same. Total unaccounted transactions amounting to Rs 225 crore have been detected so far,” the CBDT said.
In the case of the group involved in the business of precious and semi-precious stones, jewellery, antiques, handicrafts, carpets and textiles, the “entire detail of unaccounted manufacturing activity of gold and silver ornaments for the last 6 years” was recovered from a concealed cavity created in the showroom.
“It is pertinent to note that this manufacturing activity has never been reported in any of the income tax returns (ITRs) filed by the group.”
“Documents relating to benami property of Rs 15 crore were also found from the secret chamber,” it said.
The statement said tax sleuths are working to crack the alpha-numeric secret codes mentioned on each item to find the actual sale price embedded on them.
“The concealed incriminating data maintained by the assessee in a software called Jewels Prime has been retrieved by the search team.”
“A perusal of these incriminating documents, data and the regular books of account revealed that the assessee had been suppressing the sales ranging from 100 per cent-150 per cent on the items sold to foreign tourists,” it said.
The jeweller group had also advanced unaccounted cash loans to various persons amounting to Rs 122.67 crore and is also earning unaccounted interest on the same, it said.
“The group introduced its unaccounted cash income through the bank accounts of their employees and workers. Total unaccounted transactions amounting to Rs 525 crore have been detected so far,” the CBDT said.