The Income Tax Department on Thursday searched five premises belonging to a major wholesale distributor of pharmaceuticals in Kashmir, detecting undisclosed income of Rs 3.08 crore from sale of two pieces of land and unexplained deposits worth Rs 47.2 lakh after demonetisation, a statement from the taxman said.
Though the statement did not name the company, sources said the searches were conducted at the premises of North Point Pharmaceuticals, owned by a family which is also related to Imran Raza Ansari, a former PDP state minister in the erstwhile PDP-BJP state government and now a leader of Jammu & Kashmir People’s Conference.
“It was gathered that the group charged huge premium on life saving drugs which were exclusively sourced through it in the Valley and the extra normal profits earned by this modus operandi were used for investment in real estate in Srinagar, as well as for unaccounted expenditure by the promoter’s family not disclosed in their income tax returns,” the I-T Department stated.
Sources said Ansari’s sister is married into the family whose premises were searched. However, they maintained that the searches were not linked to Ansari.
The Department said the search yielded “incriminating documents and digital evidence” that suggest huge concealment of income by the promoter and his family members.
“Apparently, Rs 3.08 crore in transactions of two pieces of land in Srinagar has been earned by the group, which has not been disclosed in the returns of income,” the Department said, adding that the seized digital evidence in the form of hard disk indicates that a part of the sales proceeds, approximating 10 per cent of the turnover, are kept outside the books of accounts to suppress profits. The search has also led to unearthing of an undisclosed bank account in the name of a family member of the promoter of the group in the J&K Bank at the Allamgiri Branch in Srinagar.
“The group has been allowed restructuring of its debt owed to J&K Bank, whereby 50 per cent of its monthly interest repayment is waived. Prima facie, the debt has been restructured in a manner that defies normal commercial transaction norms,” the release stated.
The proceeds in this bank account are apparently used to channel unaccounted income earned in the pharmaceutical business, it added.
Three bank lockers of the group have also been found in the search and their operation is likely to yield more incriminating evidence against the group, the release said.