Income Tax Department raids 23 premises of diamond manufacturer in Gujarat, seizes unaccounted data
Sep 25, 2021
New Delhi [India], September 25 : The Income Tax Department carried out search and seizure operations on 23 premises connected to a leading Diamond manufacturer and exporter from Gujarat and seized a large volume of unaccounted data.
The raids were conducted on September 22 based on intelligence input about tax evasion.
As per a press release of the Ministry of Finance, apart from the diamond business, the group was also in the business of manufacturing of tiles. The operation covered 23 premises located in Surat, Navsari, Morbi, Wankaner in Gujarat and Mumbai in Maharashtra.
"The highlight of the search includes seizure of large volume of unaccounted data seized in the paper as well as digital form, which was kept at secret locations under the custody of its trusted employees at Surat, Navasari, Mumbai," the release read.
"The data includes proof of unaccounted purchases, unaccounted sales, taking accommodation entries for purchases against which cash is received, the movement of such cash and stock through angadia firms, keeping the unaccounted cash with angadias, investment of such unaccounted income for purchase of property and stock, etc for the last five years," it added.
The primary analysis of data reveals that the assessee has made unaccounted purchases and sales of small polished diamonds of about Rs 518 crore over the period.
Further, 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 assessee, over these years, has accounted for the sale of about Rs 2,742 crore of small diamonds in its books, against which, a substantial part of purchases were made in cash, but the purchase bills were taken from accommodation entry providers," the ministry informed.
Furthermore, as per the ministry, the assessee was also 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.
"The data reveals that the assessee has made purchases of Rs 189 crore and sale of Rs 1040 crore in the last two years through this entity," they said.
" During the search, the complete financial transactions of real estate deals were found which led to the detection of unaccounted income of Rs 80 crore. Further, the sale transactions of shares pertaining to the business of tiles were examined, which led to the detection of Rs 81 crore of unaccounted income," they added.
The Income Tax Department, during the search operation, also seized unaccounted cash and jewellery worth Rs 1.95 crore, and unaccounted diamond stock of 8900 carat worth Rs 10.98 crore has been detected so far.
"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 added.
The search operation is still continuing and further investigations are in progress.
