THe Income Tax Department has unearthed a huge amount of unaccounted wealth from a leading manufacturer and seller of Pashmina, Kashmiri and Jamawar shawls who has made big black money investments in a luxury hotel and real estate in India and abroad.

The search and seizure operations carried out on June 15 covered more than 15 premises spread across Srinagar, Anantnag and Delhi.

“The group is found to have made huge unaccounted investment in a large number of immovable properties not only in India, but also abroad. Investigations have also revealed the group’s investment in a luxury hotel which is not fully disclosed in the regular books of account,” according to an official statement from the Income Tax Department.

During the course of the search operation, a large amount of incriminating documents and digital evidence has been seized.

A preliminary analysis of the seized documents indicates that a substantial portion of sales have been made in cash, which have not been found recorded in the regular books of account, the official statement said.

The search action has also revealed that the Group has resorted to large scale tax evasion through undervaluation and under-reporting of stocks. Unaccounted stock of more than Rs. 4 crore has been detected in Delhi alone, the statement disclosed.

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 an informal profit-sharing arrangement.

The search action has led to the seizure of cash of more than Rs. 46 lakh.

Further investigations are still in progress.

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