Income tax investigation officials on Friday morning began searches in more than 20 places belonging to wholesale textile dealers Gandhi Fabrics and Jain Textiles and a few jewellery stores in several parts of the city. The searches continued till evening in almost all the places.
I-T sources said these shops were not paying taxes properly. “We wanted to check their accounts as they were evading income tax. As of now, more than 20 places have come under scrutiny. If need be, we will search more areas,” said a senior I-T official. Apart from the shops, the searches were also going on in the residences of the owners and workers.
Gandhi Fabrics and Jain Textiles deal in sarees and uniforms for workers in wholesale. “We have information about the owners of the wholesale dealers not maintaining proper accounts and thereby evading income tax.
The searches also include premises (of the fabrics and textiles) in Parry’s Corner and Washermenpet. Apart from this, some jewellers connected to the wholesale dealers were also searched,” said the official.
The searches took places in shops at T Nagar, Pallavaram and other areas of the city. “So far we have seized unaccounted cash to the extent of 7 crores. Apart from the cash, we have also seized 15kg of gold, mostly in the form of jewellery,” said the official.
The value of the unaccounted cash and gold is likely to go up once the searches are completed in all the places. “We will come to know the exact amount of unaccounted cash and gold once we complete the searches.
After we go through the books of accounts, we will be able to know the total business of these shops and how much tax has been evaded,” said the official.
The seizure of black money hoarding by traders defeated the very purpose of demonetisation and post government restriction of cash withdrawal norms , TDS from bank says legal experts.
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