IT Department conducts searches in Gujarat; Detects Unaccounted Transactions worth Rs.300 Crore

IT Department conducts searches in Gujarat; Detects Unaccounted Transactions worth Rs.300 Crore The Income Tax Department carried out a search and seizure operation on 09.08.2022 on a business group primarily engaged in manufacturing and trading of ceramic tiles. A total of 36 locations were searched, including in Rajkot, Morbi, Ahmedabad, Raipur, Guwahati, Gurgaon, and Kolkata. The search effort included those who work in the finance industry. Various damning documents and digital data have been discovered and seized over the course of the search operation. The group has been involved in widespread tax evasion, according to the initial investigation of these evidences. This has been done using a variety of strategies, such as under-invoicing of sales and booking of fictitious transactions, as well as unexplained cash sales outside the books of account. The organisation has also been discovered to be complicit in the stacking of unaccounted funds via fictitious unsecured loans from connected parties and stock from shell firms situated in Kolkata. Multiple pieces of evidence have also been discovered that show the gang was involved in transferring the unaccounted monies into the normal books of account using accommodation entries supplied by a Gujarat-based finance provider. So far, the search action has resulted in unearthing of unaccounted transactions exceeding Rs. 300 crore including cash loans of more than Rs. 100 crore. Further investigations are in progress.