I-T crackdown on Kerala mining groups unearth large volume of unaccounted cash

The Income Tax (I-T) Department has carried out search and seizure operations on two groups engaged in quarry operations at more than 35 premises spread across Kottayam, Eranakulam, Thrissur, Palakkad and Kannur districts in Kerala.

The action resulted in the seizure of unaccounted cash to the tune of over Rs 2.30 crore. So far, the searches have led to the detection of estimated unaccounted transactions amounting to Rs 200 crore.

During the course of the search operation, various incriminating documents and digital evidence have been found and seized, including a parallel set of books of account recording the entries of actual sales and receipt of cash.

These evidences have revealed the modus operandi being followed by the quarry operators who indulged in large-scale suppression of sales made in cash, including the fact that these transactions were not recorded in the regular books of account of the groups, the I-T Department statement.

The correlation of these evidences also indicates that the unaccounted cash generated was systematically invested in acquisition of immovable properties, used for the business of cash loans, and unrecorded capital investments in other businesses.

The search team has also gathered evidences of on-money payment for purchase of properties and substantial cash deposits in undisclosed bank accounts. The assessees of the group have been found to have sold immovable properties without duly accounting for the capital gains arising from such transactions.




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