Tax raid at 23 premises of Gujarat diamond firm, multi-crore fraud suspected

New Delhi: The Central Board of Direct Taxes or CBDT today said the Income Tax Department has detected tax evasion worth crores of rupees in raids on a leading diamond manufacturer and exporter of Gujarat.

The searches were launched on September 22 at 23 premises of the group, which is also in tiles manufacturing business, at Surat, Navsari, Morbi and Wankaner (Morbi) in Gujarat and Mumbai in Maharashtra.

The raids are still being carried out, it said.

“The primary analysis of data reveals that the assessee has made unaccounted purchase and sale of small polished diamonds of about ₹ 518 crore over a period.”

“The data reveals that the assessee has sold more than ₹ 95 crore of diamond scrap in cash generated from its manufacturing activities, which remains unaccounted for and represents its income,” the Central Board of Direct Taxes (CBDT) claimed in a statement.