Income tax department detects black income of 500 crore rupees after raids on Jaipur jewelry, gemstone cluster

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The Income Tax Department detected undisclosed income of more than 500 crore rupees after recently raiding a Jaipur-based group engaged in the manufacture and export of jewelry and colored gemstones, said Wednesday the CBDT.

About fifty premises were searched by the department during searches launched on November 23.

The tax office also seized Rs 4 crore in cash and jewelry worth Rs 9 crore during the action against the unidentified group.

“So far the detection of undisclosed income over Rs 500 crore has been carried out in the group, of which a total amount of Rs 72 crore has been admitted by the respective group entities as their undisclosed income” , the CBDT said in a statement. declaration.

The Central Council for Direct Taxes oversees the policy of the income tax department. The CBDT claimed that “the rough of semi-precious and precious stones is imported from African countries and the same is processed in Jaipur”. “The yield of cut and polished stones is suppressed and part of it is sold for cash, generating unrecorded income which is not recorded in the books of account,” he said.

This unrecorded income, according to the release, is then used to earn interest by providing cash loans through a financial broker.

Documentary and digital evidence of the disbursements of these cash loans and the interest received were seized by the tax department.

“Incriminating evidence regarding unaccounted for sales and purchases, stock differences, non-genuine unsecured loans and stock demand money has also been found,” he said.

The department also found documents from group entities operating out of a Special Economic Zone (SEZ), indicating that they engage in “unfair practices” to report higher profits from these units because the income of these units are eligible for exemption under 10AA from income tax. Law (special provisions for newly created units in SEZs).


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