The Income Tax Department on Thursday announced that it has detected undisclosed income of over Rs 500 crore from the searches it conducted on November 10, at 32 premises located in Chennai, Mumbai, Kolkata, Coimbatore, Salem, Trichy, Madurai and Tirunelveli of leading wholesale bullion and gold jewellery dealer doing business from Chennai.
Of the Rs 500 crore undetected income, the assessee has made voluntary disclosure of Rs 150 crore. The group has been maintaining a custom-made package called Jpac to cleverly conceal the true facts of the business, the IT department said.
“The goods were transported by raising bills/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,” they have said in their statement.
“The data from the system maintained by the group shows a net income of Rs.102 crore outside 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,” the press statement from IT Department said.
The evidence unearthed includes unaccounted stock maintained by the assessee at various places. Around 814 kilograms of excess stock valued at around Rs 400 crore was identified by the I-T Department and would be brought to tax. “Since it is a business stock, the same could not be seized as 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 books for the financial year 2018-19 alone,” they stated in the press statement.
Similarly, excess stock of 50 kg found in the business premises of related concerns was not seized, but identified for quantification of unaccounted income. Investigations are on to find out about the non-business investments of the group.