IT Department detects over ₹200-crore undisclosed income after raids on Mumbai mobile accessories dealers

It said it was found that the transactions with their Chinese counterparts took place through the We-chat app.

The Income Tax Department has detected an undisclosed income of over ₹200 crore after it raided some Mumbai-based dealers involved in the business of mobile accessories by allegedly “under-invoicing” imports from China, the CBDT said Saturday.

“This operation has revealed that the entire sector of trading in mobile accessories is largely unaccounted. The main components are imported from China through Mumbai and Chennai ports.” “Search has revealed that the dealers are under-valuing the sales and purchases in a major way,” it said.

It said it was found that the transactions with their Chinese counterparts took place through the We-chat app. “The Department has recovered the We-chat messages using forensics. The information pieces are being verified and collated to extract information regarding the quantum and cost of Chinese imports.” “Unaccounted cash of ₹5.89 crore has been seized, so far, in this operation. The searches, as yet, have resulted in the detection of undisclosed income of around ₹270 crore,” it said. It said the exercise of valuation of unaccounted stock was in progress, the statement said.

The statement said these groups import goods from China and sells these goods to various parties all over India. The imports are under-invoiced and payments are made through hawala channels, it said.

The CBDT said the sleuths found 13 secret godowns containing un-accounted stock and it is being inventorised and valuation is under progress. Evidence of unaccounted investments in properties by the said dealers amounting to ₹40.5 crore has been detected, it claimed.

The Department also recently conducted searches against a prominent builder based in the capital city of Maharashtra.

The real estate group is developing a commercial mall, having 950 units exclusively for the mobile accessories business. “Of these, about 905 of the units have been sold starting from 2017 till date. The evidences stored in a pen drive found in the searched premises revealed that the builder group, has taken an amount of ₹150 crore as on-money receipts over and above the agreement value, which is not accounted for in the books of accounts on sale of such units,” it alleged.

Evidence of on-money amounting to ₹70 crore has been found in the pen drive pertaining to a residential-cum-commercial project, it claimed.

Cash of ₹5.50 crore has been found and seized from various premises of this group. “The receipts of on-money for sale of shops/flats by the builder in various projects recorded in digital form have been seized,” it said.

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