The Income Tax Department carried out search and seizure operations on a leading Gutkha distributor of Gujarat on 16.11.2021. The search action covered more than 15 premises at different locations in Ahmedabad.

During the course of the search action, various incriminating documents and digital evidence were found and seized. The preliminary analysis of these evidences clearly indicate evasion of taxable income by adopting various malpractices such as unaccounted purchases of materials, under-invoicing of sales, and unaccounted expenditure incurred in cash. Further analysis of seized material reveals that part of these cash sales have not been recorded in the books of accounts. The search team has also unearthed evidences of undisclosed investment in immovable properties.

The search operation has resulted in the seizure of unaccounted cash of about ₹ 7.50 crore and unexplained jewellery of about ₹ 4 crore. Prohibitory orders have also been placed on bank lockers.

The search action, so far, has led to the detection of unaccounted income of more than ₹ 100 crore. Out of this, the group has admitted undisclosed income exceeding ₹ 30 crore.

Further investigations are under progress.

****

RM/KMN

Search and seizure uncovers systematic tax evasion by distributor, revealing unrecorded sales, under invoicing and undisclosed assets. Search and seizure operations on a leading gutkha distributor uncovered documentary and digital evidence indicating unaccounted purchases, under invoicing of sales, unrecorded cash sales, and undisclosed investment in immovable property; seizures included substantial unaccounted cash and unexplained jewellery, bank locker prohibitory orders were imposed, and investigations continue after detection of large-scale unaccounted income with partial admissions by the group.