Income tax department has started scrutiny of documents recovered during raids in Jammu and Kashmir, claiming its officials detected undeclared properties worth Rs 41 cr and seized Rs 1.44 cr undisclosed cash so far.
A senior tax department official said bank lockers of tax evaders are also being probed in order to unearth undisclosed assets. “IT experts are also on job,” he said and added that after following due procedure, action under IT laws will be initiated against habitual tax evaders.
During the raids, unaccounted jewellery worth Rs 2.48 cr seized and concealed financial transactions of nearly Rs 17 cr detected, a statement by the Central Board of Direct Taxes said.
“The search actions were part of the department’s continued drive against use of black money by disruptive elements in J&K. The operations also send a message of deterrence and obviation to those intending to vitiate the democratic process of free and fair elections.
“Several hard disks were also seized and their analysis is likely to lead to identification of third parties that have indulged in property and financial transactions that have been deliberately concealed from the tax authorities,” the statement said.
The statement also said that documents showing transactions relating to cross LoC trade were carried “in the names of some of the proxies were found”.
“Investigations are in progress to determine the clandestine cross-LoC trade conducted by the tax evaders through the custodian of the Trade Facilitation Center, Srinagar,” the statement said.
During another operation, a land and property broker of Srinagar was allegedly found to have concealed transactions worth Rs 4.21 cr from tax and other authorities.
It is also a matter of record that the tax evader has never filed any income tax return, the statement said.
The department also searched a hotelier and retailer of liquor in the Valley, who have been allegedly earning huge undisclosed profits from sale of liquor as well as from his hotel business and has not shown cash receipts in his accounts.
Hard disks containing digital evidence have been seized which support the charge of deliberate attempt to evade tax and earn large income in cash that is willfully and consciously kept outside the tax net, the department said.
A family business group in Jammu and Katra also came under the scanner. It was found that the group has routinely conducted a significant proportion of their business in unaccounted cash and the money so earned has been round-tripped in real estate deals in Jammu and Katra. The untaxed proceeds have also allegedly been used to construct a retail mall in Jammu and to acquire expensive jewellery for the family members.