The Income Tax Department initiated search and seizure operations on a prominent business group, engaged primarily in the manufacturing of stainless steel and metal pipes, in Ahmedabad on 23.11. 2021. The search operation covered more than 30 premises in Ahmedabad and Mumbai.

During the course of the search operation, a large number of incriminating documents, loose sheets, digital evidence etc. have been found and seized. These evidences contain detailed records of the group’s unaccounted income on which due taxes have not been paid. A preliminary analysis of evidence indicates that the group is indulging in unaccounted sales of goods and scrap in cash which is not recorded in the regular books of account.  Further, incriminating evidence of various malpractices such as unaccounted cash loans advanced and interest earned thereon, expenses incurred in cash, bogus expenses and purchases, unaccounted land investments etc. has also been unearthed. The deleted WhatsApp chat of a key person, detected during the search, revealed evidence of obtaining huge accommodation entries by the group to reduce its taxable income. Certain benami properties have also been identified.

The search action has resulted in the seizure of unaccounted cash of ₹ 1.80 crore and unexplained jewellery valued at ₹ 8.30 crore. So far, 18 bank lockers have been put under restraint. The search action has led to the detection of total unaccounted transactions exceeding ₹ 500 crore.

  Further investigations are under progress.

Search and seizure uncovering tax evasion through unrecorded cash sales and benami property, triggering criminal tax investigation. Search and seizure operations on a manufacturing group uncovered documentary and digital evidence of unrecorded cash sales, unaccounted cash loans and interest, cash expenses, bogus expenses and purchases, unaccounted land investments, accommodation entries to reduce taxable income, and identified benami properties; seizures and restraints included unaccounted cash, unexplained jewellery and multiple bank lockers, with further investigation ongoing.