IT Raid On Kashmiri Biz Group in Delhi, Cash Seized

New Delhi- The Income Tax department has seized over Rs 46 lakh in cash after it recently raided the premises of a “leading” Pashmina and Kashmiri shawl manufacturer in Jammu and Kashmir and Delhi, the Central Board of Direct Taxes (CBDT) said on Friday.

The raids were launched on June 15 at 15 premises in Srinagar and Anantnag in Jammu and Kashmir and the national capital.

“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 CBDT said in a statement.

The board is the administrative body for the Income Tax department.

The business group, manufacturer and seller of pashmina, jamawar and other varieties of Kashmiri shawls, resorted to “large-scale” tax evasion through “under-valuation” and under-reporting of stocks, the IT department alleged.

“Unaccounted stock of more than Rs 4 crore has been detected in Delhi alone,” it said.

The department gathered documents that showed that the group made 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 huge unaccounted investments in a large number of immovable properties not only in India but also abroad,” it said.

It was found that the group had an investment in a luxury hotel which is not fully disclosed in the regular books of account the IT department claimed.

“The search action has led to the seizure of unaccounted cash of more than Rs 46 lakh,” it added.

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