I-T dept raids on Kashmir business group led to detection of undisclosed income: CBDT

The income-tax department has detected undisclosed income worth crores of rupees after it conducted searches against a Jammu and Kashmir-based business group engaged in various sectors, such as cement, steel, glass, plywood, tourism and healthcare, among others. The Central Board of Direct Taxes (CBDT) issued a statement on Wednesday, saying it covered 40 premises in the Srinagar, Sopore, Budgam, Sonmarg and Pulwama areas of the Kashmir valley, apart from Delhi, after the raids were launched on Monday.

Incriminating documents, hand-written diaries and digital devices were seized during the searches, it said.

"Variation in stock has also been noticed in the various factories and retail outlets. Evidence of undisclosed investments in immovable properties located in Kashmir Valley of more than Rs 50 crore has also been found from various premises," the CBDT said, without identifying the business group.


The CBDT is the administrative body for the I-T department.

It further claimed that the group has been "suppressing" its taxable income by grossly under-reporting its sales in the cement sector by more than Rs 60 crore over the past several years.

"In this regard, evidence in the form of cash vouchers and sales invoices has been seized, which is found to have not been recorded in the books of account," it said.

Similarly, evidence of undisclosed sales in the books of account exceeding Rs 50 crore in the textile and plywood sectors has also been found, the CBDT said.

In the real estate business of the group, being carried out in Kashmir and Delhi, documents with regard to the receipt of on-money (cash) have been recovered.

A key person of the group has "admitted" the above modus-operandi being followed for the generation of undisclosed income, the statement claimed.

The action has resulted in unaccounted cash of more than Rs 1.7 crore being seized, in addition to unaccounted bullion worth Rs 16 lakh, it said.