I-T detects Rs 1,000-crore black money after raids in TN

The Income Tax Department has detected undisclosed income of over Rs 1,000 crore after it raided a "leading" bullion trader and south India's "biggest" jewellery retailer based in election-bound Tamil Nadu, the CBDT claimed on Sunday. The searches were carried out on March 4 at 27 premises in Chennai, Mumbai, Coimbatore, Madurai, Tiruchirappalli, Thrissur, Nellore, Jaipur and Indore. Unaccounted cash of Rs 1.2 crore was also seized during the raids, it claimed."The evidences found in 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 CBDT alleged in a statement.

In the case of the jewellery retailer, it was found 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." Also, it claimed, the assessee had "made unaccounted gold bullion purchases, claimed wrongful bad debts, inflated wastages in conversion of old gold to fine gold and jewellery making, etc." "The searches, so far, have resulted in the detection of undisclosed income of more than Rs 1,000 crore," it said.