Income Tax Department conducts search in Rajasthan

On November 23, 2021, the Income Tax Department launched a search and seizure operation in Jaipur against a group that manufactures and exports jewellery and coloured gemstones. More than 50 places in and around Jaipur were searched during the operation.

During the investigation, it was discovered that semi-precious and precious stone rough is smuggled from African countries and treated in Jaipur. The output of cut and polished stones is reduced, and a portion of it is sold for cash, resulting in unexplained money that is not shown in the books. Such unexplained funds are then used to generate interest by giving cash loans through a finance broker. Documentary and digital proof of disbursements of such monetary loans, as well as interest generated on them, has been confiscated by the search team. The financial broker has acknowledged the nature of these transactions.

Aside from that, incriminating evidence has been discovered linked to unexplained sales and purchases, stock differences, non-genuine unsecured loans, and share application money, among other things. Furthermore, documents from the group’s entities operating in Special Economic Zones (SEZ) have been discovered, indicating that they are engaging in unfair practises by declaring higher profits from these units because the income from these units is eligible for exemption under Section 10AA of the Income-tax Act, 1961.

The search operation resulted in the confiscation of around Rs. 4 crore in cash and Rs. 9.00 crore in jewellery. So far, the group has discovered undisclosed revenue totaling more than Rs. 500 crore, of which the individual group entities have admitted a total of Rs. 72 crore as their undisclosed income.

Further investigations are being carried out.