NEW DELHI: In a major crackdown on terror financing, the Income Tax Department Friday said it has unearthed undisclosed cash, jewellery and property papers worth several crores in Jammu and Kashmir.
Search operations were conducted at five locations in Kashmir valley and a few places in Jammu on Thursday, the department said in a statement.
“These actions are part of the Department’s continued drive against use of black money by disruptive elements in the state. The operations also send a message of deterrence and obviation to those intending to vitiate the democratic process of free and fair elections,” it said.
The tax department further said one operation was against a prominent Line of Control (LOC) trader who apparently used proxies to conduct large cross-LoC trade in the past six years.
“Large undisclosed profit earned by him has been diverted to allegedly suspect elements in the Valley. During the action, documents of transactions in the names of some of the proxies were found. Investigations are in progress to determine the clandestine cross-LOC trade conducted by the tax evader through the Custodian of the Trade Facilitation Centre, Srinagar,” it said.
The tax department also said the preliminary results of the search operation are extremely encouraging.
In the aggregate, undisclosed cash of Rs 1.44 crore and unaccounted jewellery of Rs 2.48 crore have been seized.
The documentary evidence collected and examined so far shows undeclared property transactions of more than Rs 41 crore, primarily in the Kashmir valley and concealed financial transactions of nearly Rs 17 crore.
A number of hard disks have also been seized that prima facie corroborate the evidence found in the seized documents, the department said.
The department also covered a hotelier and a retailer of liquor in the Kashmir valley.
Evidence found in search shows that he has been earning large undisclosed profits on the sale of liquor as well as from his hotel business and he has not shown cash receipts in his books of account.