The Income Tax Department has carried out searches against two Chennai-based groups, one of which is a leading bullion trader in Tamil Nadu and the other, one of the biggest jewellery retailers in South India.
The search operation was carried out on Thursday at 27 premises located in Chennai, Mumbai, Coimbatore, Madurai, Tiruchi, Thrissur, Nellore, Jaipur and Indore, an official release said.
According to the release, the searches at the premises of the bullion trader revealed that there were unaccounted cash sales; bogus cash credits from its branches; cash credits in dummy accounts in the guise of advance for purchases; unexplained cash deposits during the demonetisation period; bogus outstanding sundry creditors and huge unexplained stock variations.
The searches at the premises of the jewellery retailer revealed that the taxpayer received and repaid cash loans from local financiers; had given cash loans to builders and made cash investments in real estate properties; made unaccounted gold bullion purchases; claimed wrongful bad debts; inflated wastages in conversion of old gold to fine gold and jewellery making, etc, the release added.
The searches, so far, have resulted in the detection of undisclosed income of more than ₹1,000 crore. Unaccounted cash of ₹1.2 crore has been seized so far, the release added.