I-T dept conducts search, seizure against pharma wholesaler at 5 locations in Kashmir

The Income-Tax department on Thursday conducted search and seizure operations against a wholesale distributor of pharmaceuticals at five locations in the Kashmir Valley.

The group was allegedly charging a huge premium on life-saving drugs and making extra-normal profits, which were being used for investment in real estate in Srinagar, as well as for unaccounted expenditure by the promoter's family not disclosed in 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 two pieces of land in Srinagar has been earned by the group, which has not been disclosed in the returns of income," said the Central Board of Direct Taxes (CBDT).

The search action has also led to the unearthing of an undisclosed bank account in the name of a family member of the promoter of the group in the Jammu and Kashmir 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. Three bank lockers of the group have also been found in the search and their operation is likely to yield more incriminating evidence against the group," the CBDT added.

The group has been allowed restructuring of its debt owed to Jammu and Kashmir Bank, whereby 50 per cent of its monthly interest repayment is waived.

The group had deposited cash of Rs 47.20 lakh in the old demonetised currency during the demonetisation period. The source of this cash remains unexplained.