New Delhi: The Income Tax Department carried out search and seizure operations on two private Syndicate Financing groups based in Chennai. The search operation was carried out at 35 premises located in Chennai.
The evidence found in the premises of the financiers and their associates revealed that these groups have lent to various big corporate houses and businesses in Tamil Nadu, a substantial portion of which is in cash. During the search, it was detected that they are charging high rate of interest, a part of which is not offered to tax.
The modus operandi adopted by the groups revealed that most of the interest payments by borrowers are received in dummy bank accounts and the same has not been disclosed for tax purposes. Further, the unaccounted monies are disguised and brought into the books of account of the groups as unsecured loans, sundry creditors, etc.
Other evidence found during the course of the search revealed numerous undisclosed property investments and other income suppression by these persons.
The searches, so far, have resulted in the detection of undisclosed income of more than Rs. 300 crore. Unaccounted cash of Rs. 9 crore has been seized so far.
The Income Tax Department carried out search and seizure operations on 22.09.2021 on premises of a leading Diamond manufacturer and exporter from Gujarat, based on intelligence input about tax evasion. 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 & Mumbai in Maharashtra.
​The primary analysis of data reveals that the assessee has made unaccounted purchase and sale 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 sale of about Rs. 2,742 crore of small diamonds in its books, against which, substantial part of purchases were made in cash, but the purchase bills were taken from accommodation entry providers.
​Furthermore, 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.
​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.
During the search operation, unaccounted cash and jewellery of Rs. 1.95 crore has been seized, 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.
