CBDT Reveals Multi-Crore Undisclosed Income Unearthed in J&K Business Raids
I-T Department Seizes Cash and Bullion in Raids on Prominent J&K Business Group
Srinagar, 11-10-2023 : The income-tax department recently conducted a series of searches against a prominent business group based in Jammu and Kashmir, which operates across diverse sectors including cement, steel, glass, plywood, tourism, and healthcare. As a result of these operations, the Central Board of Direct Taxes (CBDT) announced the discovery of undisclosed income amounting to a significant sum.
The searches covered a total of 40 locations in the Srinagar, Sopore, Budgam, Sonmarg, and Pulwama regions of the Kashmir Valley, along with premises in Delhi. During these operations, the authorities seized incriminating documents, handwritten diaries, and digital devices, all of which are expected to shed light on the group’s financial activities.
The CBDT revealed that discrepancies in stock levels were observed in various factories and retail outlets. Moreover, evidence of undisclosed investments in real estate properties within the Kashmir Valley, with a cumulative worth exceeding Rs 50 crore, was discovered in various premises. However, the CBDT did not disclose the identity of the business group in question.
The CBDT’s statement further disclosed that the group had allegedly underreported its sales in the cement sector by more than Rs 60 crore over the past several years. Evidence in the form of cash vouchers and sales invoices, which were not recorded in the books of accounts, was seized in this regard. A similar situation was noted in the textile and plywood sectors, where evidence of undisclosed sales exceeding Rs 50 crore was uncovered.
Regarding the real estate activities of the group, both in Kashmir and Delhi, documents related to the receipt of on-money (cash) were recovered. The CBDT stated that a key figure within the group has admitted to the modus operandi used to generate undisclosed income.
As a result of these actions, the authorities have seized unaccounted cash exceeding Rs 1.7 crore, in addition to unaccounted bullion valued at Rs 16 lakh. The CBDT, which serves as the administrative body for the income-tax department, is expected to take further action based on the evidence and findings from these searches.
