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New Delhi : The Income-Tax ( i-T) Department carried out search and seizure operation on January 5, 2022, on two groups engaged in the business of quarry operation.  More than 35 premises spread across districts of Kottayam, Eranakulam, Thrissur, Palakkad, and Kannur, were covered in the search operation.

During the course of the search operation, various incriminating documents and digital evidences were found and seized including a parallel set of books of account recording the entries of actual sales and receipt of cash. These evidences clearly revealed the modus operandi being followed by the quarry operators as they are indulging in largescale suppression of sales made in cash including the fact that these transactions were not recorded in the regular books of account of the group, according to a PIB release.

The correlation of these evidences also indicates that the unaccounted cash so 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 also gathered evidences of on-money payment for purchase of properties and substantial cash deposits in undisclosed bank accounts. The assessees of the group were found to have sold immovable properties without duly accounting for the capital gains arising from such transactions.

The search action resulted in seizure of unaccounted cash of more than Rs 2.30 crore. So far, the search has led to the detection of estimated unaccounted income to the tune of Rs 200 crore. Further investigations are in progress.