Income Tax Department Uncovers Rs. 500 Crore in Tax Evasion in Ahmedabad Raid

Income Tax Department's Search and Seizure Operations

On November 23, 2021, the Income Tax Department conducted extensive search and seizure operations on a prominent business group in Ahmedabad, primarily involved in stainless steel and metal pipe manufacturing. The operation encompassed over 30 premises across Ahmedabad and Mumbai.

Findings from the Search Operation

During this operation, a substantial amount of incriminating materials was found and seized, including:

• Documentation: Numerous documents and loose sheets revealing records of the group’s unaccounted income on which due taxes have yet to be paid.
• Digital Evidence: Electronic data indicating ongoing unaccounted sales of goods and scrap transacted in cash, which were not recorded in the official books of account.

A preliminary analysis of the seized evidence suggests the following malpractices:

• Cash Transactions: Engagement in unreported sales and cash transactions.
• Unaccounted Loans: Documentation of cash loans provided, along with interest earned, that were not disclosed.
• Bogus Transactions: Creation of fictitious expenses and purchases, alongside unrecorded land investments.

Results of the Search Action

The search has yielded impressive financial findings, including:

• Unaccounted Cash: Rs. 1.80 crore in cash.
• Jewellery: Unexplained jewellery valued at Rs. 8.30 crore.
• Bank Lockers: A total of 18 bank lockers have been put under restraint.

Overall, the investigation has uncovered unaccounted transactions exceeding Rs. 500 crore. Further investigations are currently ongoing to delve deeper into these findings.