500 Crore Black Money Detected After Raids in Jaipur Jewellery Group

The Income Tax Department detected undeclared income of more than 500 crore after a recent raid on a Jaipur-based business engaged in the manufacturing and export of jewellery and coloured gemstones, the CBDT said on Wednesday.
The department searched nearly fifty places during the raids, which began on November 23.

The tax agency recovered 4 crore in cash and 9 crore in jewellery during the action against the unnamed organisation.

The CBDT claimed in a statement that “a total of more than 500 crore in undeclared revenue has been identified in the group.” “Of this, the respective group firms have admitted an aggregate worth of 72 crore as their hidden income.”

The Central Board of Direct Taxes sets the policies for the Income Tax Department. According to the CBDT, “rough of semi-precious and precious stones is imported from African countries and processed in Jaipur.”

It stated that “the cut and polished stone yield is repressed, and a portion of it is sold in cash, resulting in unaccounted income that is not recognised in the books of accounts.”

The undisclosed earnings is then utilised to pay interest by arranging cash loans through a financial broker, according to the statement.

The IRS seized documentary and digital proof of such cash loan disbursements and interest earned.

“Incriminating evidence has also been revealed relating to inexplicable sales and purchases, stock disparities, non-genuine unsecured loans, and share application money,” the study concluded.

The department also discovered documents from group entities operating from special economic zones (SEZs) that indicate they are engaging in “unfair practises” by declaring higher profits from these units despite the fact that the income from these units is exempt under section 10AA of the Income Tax Act (special provisions for newly established units in SEZs).

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