IT siwfts search in J&K; Pharmaceuticals distributer cocern charged of unaccounted investments

Srinagar, April 26: Continuing to search for the illegal trade sectors and the connections aligned, the Income Tax Department in the state of Jammu and Kashmir today ended up conducting seizures at 5 locations. The said searches were carried out against a group which is a monopolistic wholesale distributer of pharmaceuticals in the Kashmir Valley.

  

According to the statement, the group charging huge premium on life saving drugs, earned extra normal profits, using it for investment in real estate in Srinagar. Further the concern is also charged of not disclosing unaccounted expenditure in the their income tax returns.

 

“The search action has yielded incriminating documents and digital evidence that suggest huge concealment of income by the promoter and his family members. Apparently, Rs. 3.08 crore of on-money in transactions of 2 pieces of land in Srinagar has been earned by the Group, which has not been disclosed in the returns of income”, the Income Tax official confirmed.

 

“The digital evidence in the form of hard disc that has been seized, indicates that a part of the sales proceeds, approximating nearly 10% of the turnover are kept outside the books of accounts to suppress profits”, he added.

 

The search action has also led to unearthing of an undisclosed bank account in the name of a family member of the promoter of the Group in the J& K Bank at the Allamgiri Branch in Srinagar. The proceeds in this bank account are apparently used to channel unaccounted income earned in the pharmaceutical business.

 

The searched group had deposited cash of Rs. 47.20 lakh in the old demonetised currency during the demonetisation period, where the source of cash remains unexplained, the statement claimed.