IT dept claims multi-crore tax evasion by Gujarat, TN cos

The CBDT raided a leading diamond manufacturer in Gujarat and two private syndicate financing groups in Chennai. The I-T department detected "unaccounted" income to the tune of several crores

New Delhi:The CBDT on Saturday said the Income Tax Department has detected tax evasion worth crores of rupees in raids on a leading diamond manufacturer and exporter of Gujarat. In another case, it claimed that the I-T Department has detected "unaccounted" income of over Rs 300 crore after it raided two private syndicate financing groups in Chennai.

In Gujarat, the searches were launched on September 22 at 23 premises of the group, which is also in tiles manufacturing business, at Surat, Navsari, Morbi and Wankaner (Morbi) in Gujarat and Mumbai in Maharashtra.

"The primary analysis of data reveals that the assessee has made unaccounted purchase and sale of small polished diamonds of about Rs 518 crore over the period."

"The data reveals that the assessee has sold more than Rs 95 crore of diamond scrap in cash generated from its manufacturing activities, which remains unaccounted for and represents its income," the Central Board of Direct Taxes (CBDT) claimed in a statement. The assessee, over these years, has accounted for the sale of about Rs 2,742 crore of small diamonds in its books, against which, substantial part of purchases were made in cash, but the purchase bills were taken from accommodation entry providers, it alleged.

The statement said "unaccounted" cash and jewellery worth Rs 1.95 crore has been seized during the raids and "unaccounted" diamond stock of 8900 carat worth Rs 10.98 crore has been detected.

"A large number of lockers belonging to the group have been identified, which have been placed under restraint and will be operated in due course," it said.

The policy-making body for the tax department said that the group was making its "major purchases" of rough diamonds through imports and making export sales of finished bigger diamonds through its company registered in Hongkong, which is effectively controlled and managed from India only.
IT dept detects Rs 300-cr black money after raiding 2 Chennai financing groups

In the Chennai case, the searches were carried out on September 23 at 35 premises.

"The searches, so far, have resulted in the detection of undisclosed income of more than Rs 300 crore and unaccounted cash of Rs 9 crore has been seized," the Central Board of Direct Taxes (CBDT) said in a statement.

The evidence found in the premises of the financiers and their associates revealed that these groups have lent to various big corporate houses and businesses in Tamil Nadu, a substantial portion of which is in cash, it said.

The department detected that the groups "are charging high rate of interest, a part of which is not offered to tax.

"The modus operandi adopted by the groups revealed that most of the interest payments by borrowers are received in dummy bank accounts and the same has not been disclosed for tax purposes," the policy-making body for the tax department said.

The "unaccounted monies" are disguised and brought into the books of account of the groups as unsecured loans, sundry creditors, etc, the CBDT alleged.

Numerous undisclosed property investments and other income suppression by these persons were also found, it said.

PTI