I-T raids gold dealer, detects undisclosed income of Rs 500 crore

CHENNAI: The Income Tax Department has detected undisclosed income of over Rs 500 crore during searches carried out in the premises of a leading Chennai-based wholesale bullion and jewellery dealer. The search operations were carried out at 32 premises in Chennai, Mumbai, Kolkata, Coimbatore, Salem, Tiruchy, Madurai and Tirunelveli on Tuesday.

A spokesperson from the I-T department said the sleuths have unearthed evidence, including unaccounted stock maintained by the assessee at various places. Additionally, around 814 kg of excess gold stock valued at over Rs 400 crore was identified, and would be brought to tax, said the spokesperson.

Since it is a business stock, the same could not be seized under the Income Tax Act of 1961, that restrains it. The data from the system maintained by the group shows a net income of Rs 102 crore outside books for the financial year 2018-19 alone.

The data for the following two years (FY 2019-20 and FY 2020-21), that is available in the system, is being culled out using forensic tools. Similarly, the excess stock of 50 kg gold found in the business premises of related concerns was not seized, but identified for quantification of unaccounted income.

‘More data being culled out’

The group has also been maintaining a custom-made package called Jpac, to conceal true facts of the business. The goods were transported by raising bills or invoices as rough estimation, which would then be destroyed on delivery of goods.

The data so obtained, will be used to unearth the unaccounted transactions of other parties. More data is being culled out to reach a final quantification of the unaccounted income, said a release.

The release added that the assessee has made voluntary disclosure of Rs 150 crore, out of the total undisclosed income detected so far. Investigation into the non-business investments of the group and use of accommodation entries to reduce profits, is also in progress.