Income Tax Department Unveils Extensive Operation Targeting Business Group in Jammu and Kashmir

In a recent and major development, the Income Tax Department launched a comprehensive search and seizure operation in the picturesque landscapes of the Kashmir Valley. The operation was directed at a prominent and diverse business conglomerate engaged in various sectors such as Cement, Steel, Glass, Plywood, Real Estate, Tourism, Textiles, and Healthcare, among others. This operation, which unfolded on the 9th of October 2023, encompassed more than 40 premises in multiple locations, including Srinagar, Sopore, Budgam, Sonmarg, Pulwama areas of the Kashmir Valley, and the national capital, Delhi.

During this meticulously executed operation, investigators uncovered a wealth of incriminating evidence. This evidence included the confiscation of hand-written diaries, vital documents, and a slew of digital devices. Furthermore, discrepancies in stock levels were discovered across the various factories and retail outlets linked to the conglomerate. The investigators also stumbled upon compelling proof of undisclosed investments in immovable properties, valuing over a staggering Rs. 50 crore, strategically concealed in various premises within the Kashmir Valley.

Preliminary investigations have exposed the group’s dubious practices, which involve the systematic suppression of their taxable income. In particular, the conglomerate was found to have gravely underreported their sales within the cement sector, resulting in an unreported income of more than Rs. 60 crore over an extended period of time. Concrete evidence in the form of cash vouchers and sales invoices has been seized, revealing a financial trail that had previously eluded official scrutiny. Additionally, substantial evidence of undisclosed sales, exceeding Rs. 50 crore, has been unearthed within the textile and plywood sectors, further intensifying the spotlight on this enterprise’s financial practices.

Notably, in the realm of real estate, the business group’s operations in both Kashmir and Delhi have raised eyebrows. Documents that confirm the receipt of off-the-books payments, commonly referred to as “on-money,” have been successfully retrieved. These concealed receipts, bypassing the official records, are estimated to be approximately Rs. 10 crore.

In a pivotal development, the head of the conglomerate has admitted to the intricate modus operandi employed to generate this concealed income, adding a new layer of intrigue to the ongoing investigation.

The culmination of this search operation has resulted in the seizure of a significant sum of unaccounted cash, totaling over Rs. 1.70 crore. In addition to this, unreported bullion valued at Rs. 16 lakh has also been apprehended, deepening the mystery surrounding the financial affairs of this enigmatic business group.