The Income Tax Department carried out search and seizure operation on 05.01.2022 on two groups, engaged in the business of quarry operation.  More than 35 premises spread across districts of Kottayam, Eranakulam, Thrissur, Palakkad and Kannur have been covered in the search operation.

During the course of the search operation, various incriminating documents and digital evidences have been found and seized, including a parallel set of books of account recording the entries of actual sales and receipt of cash. These evidences have clearly revealed the modus operandi being followed by the quarry operators as they are indulging in large scale suppression of sales made in cash including the fact that these transactions are not recorded in the regular books of account of the group. 

The correlation of these evidences also indicates that unaccounted cash so generated is systematically invested in acquisition of immovable properties, used for the business of cash loans, and unrecorded capital investments in other businesses. The search team has also gathered evidences of on-money payment for purchase of properties and substantial cash deposits in undisclosed bank accounts. The assessees of the group have been found to have sold immovable properties without duly accounting for the capital gains arising from such transactions.

The search action has resulted in seizure of unaccounted cash of more than ₹ 2.30 crore.

So far, the search has led to the detection of estimated unaccounted income to the tune of ₹ 200 crore. 

Further investigations are in progress.

Suppression of cash sales leads to seizure and detection of substantial unaccounted income; investigations continue. Coordinated searches on two quarry operator groups uncovered a parallel set of books evidencing systematic suppression of cash sales not recorded in regular accounts, with unaccounted cash invested in immovable properties, cash loans, and unrecorded business investments; on money property payments, undisclosed bank deposits, and non accounted capital gains were also identified, leading to seizure of unaccounted cash and ongoing investigations into detected unaccounted income.