Income Tax Department carried out search and seizure operations at various locations in New Delhi and Jammu and Kashmir, according to an official statement on Friday.
According to the Finance Ministry statement, the search operations were conducted on June 15.
"Income Tax Department carried out search and seizure operations on June 15, 2022, on a leading manufacturer and seller of Jamawar Shawls, Pashmina and Kashmiri Shawls. The search operation covered more than 15 premises spread across Srinagar, Anantnag and Delhi," said the statement.
Incriminating evidence was recovered during the search operation including hard copy documents and digital evidence.
"A preliminary analysis of the seized documents indicates that a substantial portion of sales has been made in cash, which has not been found recorded in the regular books of account. The search action has also revealed that the Group has resorted to large-scale tax evasion through undervaluation and under-reporting of stocks. The unaccounted stock of more than Rs 4 crores has been detected in Delhi alone," the statement said.
"The group is also showing exports from India to its various concerns located in Saudi Arabia and the UAE. However, the business in the UAE is found to be carried out in the name of third parties, with the informal profit-sharing arrangement," it added.
According to the Ministry, the group is found to have made a huge unaccounted investment in a large number of immovable properties not only in India but also abroad.
"Investigations have further revealed the group's investment in a luxury hotel which is not fully disclosed in the regular books of account," said the statement.
The search action has led to the seizure of unaccounted cash of more than Rs. 46 lakh.
Further investigation is underway.
( With inputs from ANI )
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