Income tax

Income Tax Department detects black income of over Rs 1000 Crore after raids on Gujarat Business Group

New Delhi: The Income Tax Department discovered “unaccounted for” income of more than Rs 1,000 crore after raiding a Gujarat-based business conglomerate last month, the CBDT said on Tuesday. “Unaccounted cash of Rs 24 crore and unexplained jewellery, bullion etc worth Rs 20 crore have been seized so far,” it said in a statement.ALSO READ – New GST rule to come into effect October 1; Read here how it will affect you

The searches were launched on July 20 and the agency covered 58 premises in Kheda, Ahmedabad, Mumbai, Hyderabad and Kolkata. The “prominent” business conglomerate is engaged in diversified fields of textiles, chemicals, packaging, real estate and education, CBDT said without identifying the group. The Central Commission of Direct Taxes (CBDT) is the administrative authority of the tax department. Also Read – Gujarat Assembly Elections 2022: PAA releases first list of 10 candidates. Check the names here

Documents and digital data seized during the searches show that the group engaged in ‘large scale’ tax evasion through various methods, including through ‘unrecorded’ cash sales off the books of accounts , accounting for false purchases and cashing out real estate transactions, he said. Also Read – RTI Filing: Income Tax Department Brings Big Changes for Taxpayers. Details inside

“The group has also been involved in layering unaccounted sums through share premiums from Kolkata-based front companies. Some instances of unrecognized revenue generated by ‘sarafi’ (unsecured) cash advances were also uncovered,” the statement added.

The business group was “involved in profiteering by manipulating the stock prices of its listed companies through traders”. The data seized indicates that the group misappropriated funds through fictitious entities for the personal use of the promoters, he said, adding that it had been found that a “manipulation” of the accounting books of the congolmerate public limited companies was underway, the CBDT said.