The seized documents pertain to unaccounted purchases and sales, fake invoices, movement of cash through courier firms, use of unaccounted proceeds for securing assets and stocks in the last five years.
The Income Tax Department has searched the premises of a leading diamond seller and exporter in Gujarat based on inputs about tax evasion.
The agency said that over the years, the group had sold small diamonds worth around Rs 2,742 crore in its books, against which a major part of the purchase was done in cash, but the purchase bill was collected from housing admission providers, the agency said. he said. It is also in tile manufacturing.
The IT department searched 23 premises located in Surat, Navsari, Morbi and Wankaner in Gujarat and Mumbai in Maharashtra. The operation involved seizure of documents relating to unaccounted purchases and sales, fake invoices, movement of cash and stock through “Angadia (courier)” firms, use of unaccounted proceeds for obtaining property and stock in the last five years.
“…the assessee has made unaccounted purchase and sale of small polished diamonds worth about `518 crore during the period…The assessee has sold diamond scraps of more than `95 crore in cash generated from his manufacturing activities, which is unaccounted for and represents its income,” the agency said.
IT investigation revealed that the group made its major purchases of rough diamonds from India through import and export sales of large finished diamonds through its company registered in Hong Kong, effectively controlled and managed. “The data shows that the assessee has made purchases of ` 189 crore and sales of ` 1,040 crore through this unit in the last two years,” it said.
According to the agency, complete financial transactions of real estate deals were found, revealing unaccounted income of ₹80 crore.
“Further, the sale transaction of shares relating to the business of tiles was examined, which revealed unaccounted income of ₹81 crore,” it said.
During the search unaccounted cash and jewelery worth ₹1.95 crore was seized, and unaccounted diamond stock of 8,900 carats worth ₹10.98 crore was unearthed. Several lockers belonging to the group have also been identified.
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