The Income-Tax Department has so far detected undisclosed income of over ₹1,000 crore during the searches at 27 locations in different parts of the country in connection with two Chennai-based groups into bullion trade and jewellery retail business.
The searches were carried out in Chennai, Mumbai, Coimbatore, Madurai, Trichy, Thrissur, Nellore, Jaipur and Indore March 4 onwards. The agency said one of the groups under scanner was a leading bullion trader in Tamil Nadu and the other was one of the biggest jewellery retailers in the South.
“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,” said the agency.
On the premises of the jewellery retailer, the department purportedly found that the taxpayer had received and repaid cash loans from local financiers. It had given cash loans to builders and made cash investments in real estate, made unaccounted gold bullion purchases, claimed wrongful bad debts and inflated wastages in conversion of old gold to fine gold and jewellery-making.
During the searches, the agency also seized ₹1.20 crore in unaccounted cash.