I-T raids on firm find massive tax evasion

The Income Tax (I-T) raids on Diamond Power Infrastructure Limited (DIP),the city-based manufacturer of electric cables and power transformers,have detected unaccounted business transactions worth Rs 644 crore and an undisclosed income of Rs 58 crore over the last four year,tax authorities said,adding they were still to open 14 sealed lockers.

“The owners have admitted to the offence and agreed to pay tax dues,” I-T sources said on Saturday,adding they would raise a demand of around Rs 20 crore in taxes on the undisclosed income alone.

The I-T team has also seized Rs 51 lakh in cash and jewellery worth Rs 2.57 lakh during the raids on the 11 premises of DPI and three residential premises of the owners on Thursday and Friday.

Around 80 I-T officials had swooped on the company’s corporate office in Gorwa,production units in Savli and Samlaya and Sevasi,and its two offices in Mumbai.

The owners’ residences in Nizampura and New Alkapuri in Gotri were also searched.