Income Tax Research conducted in Jammu & Kashmir and Punjab

On October 28, 2021, the Income Tax Department conducted search and seizure operations in the cases of individuals engaged in the business of processing and trading dry fruits.

Many incriminating documents, including digital evidence, were discovered and seized during the search operations, indicating that the assessee group has been exorbitantly inflating purchases of dry fruits over the years. Seized evidence also supports the fact that unaccounted cash was received back by the group’s directors in exchange for payment made for such purchases. Evidence was also discovered that one of the assessees was keeping a parallel set of books of accounts, with a significant difference in the sales and purchases recorded in both sets of books of accounts. One of the groups is also engaged in unreported purchases and sales of dry fruits.

Excess stock worth Rs. 40 crore has been discovered. According to the analysis of seized material and evidence gathered, one of the groups is also running a benami proprietary concern.

The claim of deduction under section 80IB of the Income-tax Act, 1961 has been found to be fraudulent in both groups and is estimated to be worth around Rs. 30 crore.

The search resulted in the seizure of Rs. 63 lakh in unaccounted cash and Rs. 2 crore in jewellery. Restriction has been imposed on fourteen bank lockers. The search operation resulted in the discovery of unaccounted income totaling more than Rs. 200 crore.

More research is being conducted.