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NEW DELHI : The Income Tax department has detected unaccounted transactions of 518 crore by a diamond exporter in Gujarat and undisclosed income of 300 crore from two financiers in Tamil Nadu, official statements said.

The tax department carried out search and seizure operations at 23 premises of the diamond manufacturer and exporter in Gujarat and Maharashtra on Wednesday.

Data recovered during the operation showed proof of unaccounted purchases and sales, accommodation entries and use of unaccounted cash for investments in property and stock for the last five years, the statement said. Accommodation entries are bogus transactions meant to fudge books.

Analysis of data showed the assessee had made unaccounted purchase and sale of small polished diamonds of about 518 crore over the period, the tax department said. The assessee, over these years, had accounted for sale of about 2,742 crore of small diamonds in its books, against which a substantial part of purchases was made in cash, but the purchase bills were taken from accommodation entry providers, the statement said.

In a separate search and seize operation on Thursday at 35 premises in Chennai, the tax department detected evidence of two financiers lending cash to businesses in Tamil Nadu. Searches so far have resulted in detection of undisclosed income of more than 300 crore. Unaccounted cash of 9 crore has been seized so far, the department said.

During the search, it was detected that they were charging a high rate of interest, a part of which was not offered to tax.

Most of the interest payments were received in dummy bank accounts and the same has not been disclosed for tax purposes. Unaccounted funds were disguised and brought into the books of account of the groups as unsecured loans.

Other evidence revealed numerous undisclosed property investments and other income suppression by these persons. Further investigations are in progress.

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