CHENNAI: The income tax department said Thursday that it detected undisclosed income for a sum of Rs 500 million during searches of a major wholesale bullion facility and gold jewelry merchant in Chennai on Tuesday.
The IT department said it searched 32 facilities located in Chennai, Mumbai, Kolkata, Coimbatore, Salem, Trichy, Madurai and Tirunelveli.
“Evidence unearthed includes unaccounted for stock held by the assessor at various locations. Around 814 kg of excess stock valued at around Rs 400 million was identified and will be taxed,” the IT department said in a statement.
However, since it is a commercial action, it could not be seized. The Income Tax Act of 1961 restricts the seizure of commercial shares.
Similarly, surplus stocks of 50 kg found in the business premises of related companies were not seized. However, they were identified for the quantification of unaccounted for income.
The IT department said that data from systems maintained by the group showed a net income of Rs 102 crore off the books for the 2018-19 financial year alone. “We are getting the same data for 2019-20 and 2020-21 from systems using forensic tools,” the statement said.
The group has maintained a custom package called Jpac to cleverly conceal the true facts of the business. The goods were transported raising invoices / invoices as a rough estimate, which would be destroyed in the delivery of the goods.
Forensic experts using specialized tools are sifting through more data to arrive at a final quantification of unaccounted for revenue, he said. The data thus obtained would be used to discover the unaccounted-for transactions of other parties.
“The appraiser has made a voluntary disclosure of Rs 150 million of the undisclosed income detected so far. Investigation into the group’s non-commercial investments and the use of accommodation tickets to reduce profits is also in progress, “the income tax department said.
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