IT raids in Rajasthan for hidden income

New Delhi : Continuing its crackdown on tax evaders, the Income Tax department has carried out search operations on two business groups in Rajasthan and seized cash and jewellery worth Rs 17 crores.

While one group is engaged in manufacturing electrical switches, wires and LEDs besides dealing in real estate and hotels in Rajasthan, Maharashtra and Uttarakhand, the other group is engaged in money lending in Jaipur as well as nearby cities.

The search action on December 22 covered more than 50 premises spread over various locations including Jaipur, Mumbai and Haridwar.

“A large number of incriminating documents and digital data have been seized during the search action,” the IT department said in a statement.

Preliminary analysis of seized evidence revealed that several entities engaged in the business of manufacturing switches, wires and LEDs have been selling goods which are not recorded in the regular books of accounts.

They were also claiming bogus expenses to reduce taxable income.

“The trail of receipt of cash component on unaccounted sale of goods has also been found. In the case of this group, the search team has detected transactions evidencing undisclosed income of more than Rs 150 crores.

“The key person in the group has admitted Rs 55 crores as undisclosed income and has offered to pay tax thereon,” the department said.

The analysis of seized and other related documents relating to the other group has revealed that most loans are given in cash and a relatively high rate of interest was charged on the loans.

“Neither the loans advanced nor the interest income earned thereon have been disclosed in the returns of income of the persons engaged in this business. Evidence relating to undisclosed income of more than Rs 150 crores has been detected in this group,” the department said.