I-T sleuths detect Rs 1K cr black income after raids on TN jewellery, bullion group

After finishing the raids on the premises belonging to a leading jewellery retailer and a linked bullion trader in Chennai and other locations, the I-T department said it had detected an undisclosed income of Rs 1,000 crore. I-T officials here also clarified that the raids nothing to do with the coming Assembly election in Tamil Nadu.

The searches were carried out on March 4 on 27 premises in Chennai, Mumbai, Coimbatore, Madurai, Tiruchirappalli, Thrissur, Nellore, Jaipur and Indore. Unaccounted cash of Rs 1.2 crore was also seized during the raids, said a release from the department.

“The evidence found on the premises of the bullion trader revealed that there were unaccounted cash sales, bogus cash credits from its branches, cash credits in dummy accounts in the guise of advance for purchases; unexplained cash deposits during the demonetisation period, bogus outstanding sundry creditors and huge unexplained stock variations,” the Central Board of Direct Taxes (CBDT) statement said.

In the case of the jewellery retailer, it was found that the “taxpayer received and repaid cash loans from local financiers, had given cash loans to builders and made cash investments in real estate properties,” the note said.

The assessee made unaccounted gold bullion purchases, claimed wrongful bad debts, inflated wastages in the conversion of old gold to fine gold and jewellery making, etc, the release added.

Income Tax department officials, however, clarified that the raids nothing to do with the coming Assembly election in Tamil Nadu