IT raids on Kashmiri businessman, huge tax evasion found

Srinagar, June 18 : The Income Tax Department has seized over Rs 46 lakh in cash during raids in the premises of a leading Pashmina and Kashmiri shawl manufacturer in Kashmir and Delhi.

The raids were launched on June 15 at 15 premises in Srinagar and Anantnag in Kashmir and New Delhi.

The raids in Srinagar were conducted at Deewan Colony Nishat in Srinagar. The sleuths of the Income Tax Department raided the residence of Feroz Ahmad Sheikh and Khalid Sheikh, both sons of Ghulam Ahmad Sheikh.

Besides Kashmir art business, they are the owners of Hotel Hilton Pahalgam.

“A preliminary analysis of the seized documents indicates that a substantial portion of sales has been made in cash which has not been found recorded in the regular books of account,” the CBDT said in a statement.

The board is the administrative body for the Income Tax department.

The business group, manufacturer and seller of pashmina, jamawar and other variety of Kashmiri shawls, resorted to “large-scale” tax evasion through “under-valuation” and under-reporting of stocks, the IT department alleged. “Unaccounted stock of more than Rs 4 crore has been detected in Delhi alone,” it said.

The department gathered documents that showed that the group made exports from India to its various concerns located in Saudi Arabia and the UAE.

“However, the business in the UAE is found to be carried out in the name of third parties with an informal profit-sharing arrangement.”

“The group is found to have made huge unaccounted investments in a large number of immovable properties not only in India but also abroad,” it said.
It was found that the group had an investment in a luxury hotel which is not fully disclosed in the regular books of account. “The search action has led to the seizure of unaccounted cash of more than Rs 46 lakh,” it added.