New Delhi: The Central Board of Direct Taxes or CBDT today said the tax Department has detected evasion worth crores of rupees in raids on a number one diamond manufacturer and exporter of Gujarat.
The searches were launched on September 22 at 23 premises of the group, which is additionally in tiles manufacturer , at Surat, Navsari, Morbi and Wankaner (Morbi) in Gujarat and Mumbai in Maharashtra.

The raids are still being administered , it said.

“The primary analysis of knowledge reveals that the assessee has made unaccounted purchase and sale of small polished diamonds of about ₹ 518 crore over a period.”

“The data reveals that the assessee has sold quite ₹ 95 crore of diamond scrap in cash generated from its manufacturing activities, which remains unaccounted for and represents its income,” the Central Board of Direct Taxes (CBDT) claimed during a statement.

The assessee, over the years, has accounted for the sale of about ₹ 2,742 crore of small diamonds in its books, against which, substantial a part of purchases were made in cash, but the acquisition bills were taken from accommodation entry providers, it alleged.

The statement said “unaccounted” cash and jewellery worth ₹ 1.95 crore has been seized during the raids and “unaccounted” diamond stock of 8,900 carat worth ₹ 10.98 crore has been detected.

“A sizable amount of lockers belonging to the group are identified, which are placed under restraint and can be operated in due course,” it said.

The policy-making body for the tax department said that the group was making its “major purchases” of rough diamonds through imports and making export sales of finished bigger diamonds through its company registered in Hong Kong , which is effectively controlled and managed from India only.

“The data reveals that the assessee has made purchases of ₹ 189 crore and sale of ₹ 1,040 crore within the last two years through this entity.”

“…financial transactions of land deals were found which led to the detection of unaccounted income of ₹ 80 crore,” it claimed.

The sale transactions of shares concerning the business of tiles were examined which led to the detection of ₹ 81 crore of unaccounted income, the Central Board of Direct Taxes said.

It said the raid teams have seized paper also as digital data, kept at secret locations under the custody of its trusted employees, that has proof of unaccounted purchases and sales, accommodation entries (obtaining illegal business entries in accounts) for purchases against which cash is received, the movement of such cash and stock through angadia firms, keeping the unaccounted cash with angadias, investment of such unaccounted income for purchase of property and stock, etc for the last five years.