The Income Tax Department conducted search and seizure operations on a prominent business group in Gujarat, informed the Ministry of Finance on Tuesday.
As per the ministry, the search operation initiated on the group engaged primarily in the manufacturing of stainless steel and metal pipes in Ahmedabad was conducted on November 23, 2021, and covered more than 30 premises in Ahmedabad and Mumbai.
During the course of the search operation, a large number of incriminating documents, loose sheets, digital evidence etc were found and seized. These evidences contain detailed records of the group's unaccounted income on which due taxes have not been paid. A preliminary analysis of evidence indicates that the group is indulging in unaccounted sales of goods and scrap in cash which is not recorded in the regular books of account.
Further, incriminating evidence of various malpractices such as unaccounted cash loans advanced and interest earned thereon, expenses incurred in cash, bogus expenses and purchases, unaccounted land investments etc was also unearthed.
The ministry further informed that the deleted WhatsApp chat of a key person, detected during the search, revealed evidence of obtaining huge accommodation entries by the group to reduce its taxable income. Certain benami properties were been identified.
The search action has resulted in the seizure of unaccounted cash of Rs 1.80 crore and unexplained jewellery valued at Rs 8.30 crore. So far, 18 bank lockers have been put under restraint. The search action has led to the detection of total unaccounted transactions exceeding Rs 500 crore.
Further investigation into the matter is underway.
( With inputs from ANI )
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