The Income Tax Department conducted a search and seizure operation on a prominent business group engaged in various sectors, including Cement, Steel, Glass, Plywood, Real Estate, Tourism, Textiles, and Healthcare, in the Kashmir Valley on October 9. Evidence of undisclosed investments in immovable properties located in the Kashmir Valley, totaling more than Rs. 50 crore, was found in various premises.
More than 40 premises were covered in Srinagar, Sopore, Budgam, Sonmarg and Pulwama areas of the Kashmir Valley and in Delhi. During the search operation, incriminating documents, handwritten diaries, and digital devices were seized. Discrepancies in stock were noticed in various factories and retail outlets.
Under-reporting of sales in the cement sector
Investigations have revealed that the group has been suppressing its taxable income by under-reporting its sales in the cement sector by more than Rs. 60 crore over several years. Cash vouchers and sales invoices, not recorded in the books of account, were seized as evidence. Similarly, evidence of undisclosed sales exceeding Rs. 50 crore in the textile and plywood sectors was discovered.
In the real estate business conducted by the group in Kashmir and Delhi, documents showing receipt of on-money were recovered. The suppression of receipts in the books of account is estimated to be about Rs. 10 crore.
The key person of the group has admitted to the above modus operandi for generating undisclosed income.
The search action resulted in the seizure of unaccounted cash exceeding Rs. 1.70 crore. Additionally, unaccounted bullion worth Rs. 16 lakh was seized.
Further investigations are in progress.