The Income Tax Department carried out raids on groups primarily engaged in the processing market of Gutkha, Pan masala and related substances. The searches were performed at a number of locations in India.
The official declaration issued by the Central Board of Direct Taxes (CBDT) did not specify the party. However, it was reported by official sources in the tax department as the JMJ party is promoted by businessman J M Joshi.
The development came a day after J M Joshi's actor-business son Sachin Joshi was arrested by the Enforcement Directorate (ED) in a money laundering case related to a real estate company headquartered in Mumbai.
The raid disclosed foreign assets lying with a corporation registered in the tax haven of the British Virgin Islands (BVI) with an office in Dubai and operated and regulated by the chairman of the party.
The net value of the BVI corporation is Rs 830 crore generated by the siphoning of funds from India. This money was diverted to India in the form of a share premium of Rs 638 crore in the flagship companies of the group.
During the hunt, various digital data and forensic analyses were obtained with the sponsor of the searched group. In addition, it was found that the group had made a false deduction under section 80IC of the Income-Tax Act, 1961, to the amount of Rs 398 crore.
Apart from the above, the unrecognized output of pan masala of Rs. 247 crore in 2 of the group's factory premises was also detected during the search.
The assessee wrongly charged a deduction of a sum of Rs. 63 crore in the Gandhi Dham unit u/s 10AA.
Cash of Rs13 lakh was confiscated during the search operation and jewellery amounting to Rs 7 crore were uncovered and put under prohibitory orders.
In addition, prohibitory orders were imposed on 16 lockers and on 11 premises. The search operation has therefore contributed, so far, to the discovery of uncounted transactions of about Rs 1500 crore.