Income Tax Department conducts searches on a leading Gutkha distributor in
Gujarat

On 16.11.2021, the Income Tax Department conducted a search and seizure operation at a renowned Gujarat Gutkha distributor. The search operation included more than 15 areas around Ahmedabad.

Various incriminating documents and digital data were discovered and seized during the search operation. Preliminary examination of these evidences reveals that taxable revenue was evaded through a variety of techniques, including unaccounted material purchases, under-invoicing of sales, and unaccounted cash expenditures. Further examination of the confiscated materials revealed that some of the cash sales were not documented in the books. Evidence of concealed investment in immovable assets has also been discovered by the search team.

Unaccounted cash worth Rs. 7.50 crore and unexplained jewellery worth Rs. 4.00 crore were seized during the search operation. Bank lockers have also been subjected to prohibition orders.

So far, the search operation has resulted in the discovery of undeclared revenue totaling more than Rs. 100 crore. The group has admitted to hidden income in excess of Rs. 30 crore as a result of this.

Further investigations are being carried out.