Kanpur, June 28: Income tax officials have unearthed tax evasion to the tune of Rs 300 crore after raids at a local jewellery firm and a city-based realtor in Uttar Pradesh's Kanpur, said sources on Wednesday. The raids also detected bogus purchases worth Rs 1,200 crore and bogus sales of Rs 500 crore, said officials. Around 300 I-T officials conducted the raid, which went on for six days.

The development comes after several heavy transactions made by the accused were flagged by the I-T department’s Artificial Intelligence system. Notably, the sophisticated AI tools with the I-T department flags high-value suspicious transactions. The department has acquired this software recently. Income Tax Scam in Delhi: Multi-State Tax Fraud Syndicate Involving Rs 1,047 Crore Busted, Mastermind Arrested.

The jewellery firm and the realtor have been found to be making super heavy transactions in cash, which the AI system red-flagged. The transactions in question were flagged about seven months ago and since then, transactions made by the accused were being tracked. Later, when the currency bills of Rs 2,000 were stopped from circulation, the I-T department found more clues relating to their illegal transactions, said sources.

It has also emerged that the two companies had a close working relationship. The jewellery firm invested heavily in the real estate business. The investments were made in the name of employees.

Even I-T returns worth crores were filed in their names. The jewellery firm took prime properties of eminent people of Kanpur and beyond, developed and sold them at premium prices, said officials.

“The purchase and sales figures are based on estimates. The actual figure will take some time to come in,” said officials, while adding that the department has recovered gold and cash worth Rs 26 crore. Twelve kg of gold was found hidden in the floor of a luxury car.

Significantly, the realtor under the I-T department scanner has developed the two biggest and costliest townships in the city, along with high-rise apartment buildings. The accused reportedly sold a lot of units in cash, which was then invested into the bullion trade through the jeweller. Uttar Pradesh: AI System Used by Income Tax Officials for Raids at Premises of Top Kanpur Jeweller, Realtor.

Further, in order to evade tax, bogus firms were formed in different parts of the country, including Delhi. “The probe teams have taken voluminous data, and its analysis has started,” said officials. Many eminent people of Kanpur and other parts of the state have also been found involved in making cash transactions with these two firms.

(The above story first appeared on LatestLY on Jun 28, 2023 10:12 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).