The Income Tax Department on Wednesday last week carried out search and seizure operations on a group engaged in manufacturing and export of jewellery and coloured gemstones at Jaipur. According to a statement from the finance ministry, the IT department carried out search operations on more than 50 premises at different locations in and around Jaipur.
During the course of the search, the IT department claimed to have found how the rough of semi-precious and precious stones was imported from African countries before being processed in Jaipur.
“The yield of cut and polished stones is suppressed and part of it is sold in cash, generating unaccounted income which is not recorded in the books of accounts. Such unaccounted income is then deployed to earn interest by providing cash loans through a finance broker. The search team has seized documentary and digital evidences of disbursements of such cash loans and interest earned thereon. The nature of these transactions has been admitted by the finance broker,” the statement said.
The IT department also claimed to have obtained ncriminating evidences relating to unaccounted sales and purchases, differences in stock, non-genuine unsecured loans and share application money among others. Documents have been found from entities of the group operating from Special Economic Zone (SEZ), indicating that they are indulging in unfair practices for declaring higher profits from these units as the income from these units is eligible for exemption u/s 10AA of the Income-tax Act, 1961.
The IT department said that the search action resulted in seizure of cash of about Rs. 4 crore and jewellery valued at Rs. 9.00 crore. So far, detection of undisclosed income of more than Rs. 500 crore has been made in the group, out of which aggregate amount of Rs. 72 crore has been admitted by the respective group entities as their undisclosed income.