Income Tax Department conducts searches in J&K and Delhi

Jun 17: Income Tax Department carried out search and seizure operations on 15.06.2022 on a leading manufacturer and seller of Jamawar Shawls, Pashmina, and Kashmiri Shawls. The search operation covered more than 15 premises spread across Srinagar, Anantnag, and Delhi.

During the course of the search operation, a large number of incriminating pieces of evidence including hard copy documents and digital evidence were found and seized. A preliminary analysis of the seized documents indicates that a substantial portion of sales has been made in cash, which has not been found recorded in the regular books of account. The search action has also revealed that the Group has resorted to large-scale tax evasion through undervaluation and under-reporting of stocks. The unaccounted stock of more than Rs. 4 crores has been detected in Delhi alone.

The group is also showing exports from India to its various concerns located in Saudi Arabia and the UAE. However, the business in the UAE is found to be carried out in the name of third parties, with an informal profit-sharing arrangement.

The group is found to have made a huge unaccounted investment in a large number of immovable properties not only in India but also abroad. Investigations have further revealed the group’s investment in a luxury hotel which is not fully disclosed in the regular books of account.

The search action has led to the seizure of unaccounted cash of more than Rs. 46 lakh.

Further investigations are in progress.


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