Confidential Time Barring Matter & Office of the Dy. Director of Income Tax (Inv.), Unit-2(3) Room No. 009, Ground Floor, C Block, Civic Centre, New Delhi - 110 002 F.No. DDIT (Inv/Unit-2(3/Enq. Rep/2018-19/ 1553 Dated: 07.03.2018 To, The Income Tax Officer, Ward-2(3), Amritsar Subject- Enquiry report in the case of Vishal Gems & Jewels Private Limited (PAN:AABCV2673G)-reg. Please refer to the above. Gist of Allegations 2. Information in possession of this office shows that Vishal Gems & Jewels Pvt Ltd. is maintaining a current account no, 023805001596 with Amritsar-Hall Bazar (Punjab) branch. PAN is AABCV2673G and account no. 050205000062 linked with same PAN. Alert is triggered under large value of cash transaction in the account. Transaction pattern shows credits/debits by Cash, transfer, RIGS and debits by cash withdrawal through self-paid cheques, RTGS, Transfer of Rs. 10.55 crores out of which Rs.4.88 crores by cash and Rs. 3.61 crore through RTGS.. \quiries conducted 3. Vide order sheet dated 12.10.2018 approval was taken for open enquiry in the above case and Bank Account statements of bank account no, 023805001596 and 050205000062 were obtained. Summary of credit entries in aforesaid bank accounts in FY 2011-12 and FY 2012-13 is as under: Account No. Credit in FY 2011-12 | Credit in 2012-13 (ins GnRs) __| 023805001596 8,36,23,003. 5,00,28,777. 050205000062 | 2,93,90,000. 48,80,000 [Total 11,30,13,003 5,49,08,77,x Summons dated 17.10.2018 was sent to the assessee at his Delhi address to confirm genuineness of the source of the credits. The summons was returned by the postal department with remarks “no such firms at this address”, Field enquiry was done to ascertain the identity of M/s Vishal Gems & Jewels Private Limited. As per enquiry, no such company exists on the given address at present, However, it was found that it had operated from Karol Bagh, Delhi few years back, Also, summons was sent to M/s Vishal Gems & Jewels Private Limited at its Punjab address in Amritsar. In reply of the summon, which was received on 03.01.2019, Sh. Varinder Kumar - Director of the company, sought adjournment on medical grounds as he had undergone heart surgery and doctor had advised him bed rest. He had attached report of the doctor alongwith. Subsequently he was contacted telephonically twice after reasonable gap to submit books of accounts and other details so as to confirm genuineness of the source of credits. He further, requested for more time citing his ill health, Later, through email dated 28.02.2019, he had sent incomplete document set which included: () Some purchase bills for FY 2011-12 and FY 2012-13, which did not match with the purchases as claimed in the ITR, Ledger of bank account statements 023805001596 and 050205000062 during FY 2011-12 and FY 2012-13, (iii) Ledger of M/s Ultimate Creations in its books for FY 2011-12 and FY 2012-13. No details have been submitted hence after and the complete details have not been verified. Also, copy of account of M/s Vishal Gems & Jewels Private Limited in the books of M/s Ultimate Creations was sought. The confirmation from M/s Ultimate Creations along with its bank book was obtained and has been kept on record. In the STR, few other accounts (80) have also been mentioned regarding which it has been indicated that “the subject entity has following additional bank accounts in which substantial cash transactions have taken place”. On enquiry,the details regarding many such accounts were obtained and 70 verified and it has been found that these do not belong to M/s Vishal Gems & Private Limited. ITR profiling 10. ‘The company has filed ITR for AY 2012-13 and 2013-14 showing Turnover and GTlas per following details. [AY | TURNOVER | GTI | 2012-13 | 18,68,51,732_|_7,80,368_| 2013-14 | 12,15,52,656 780,893. Outcome of Enquiry: 11. On the basis of enquiries, it has been found that the credits in the bank account during AY 2012-13 and AY 2013-14 are Rs. 11,30,13,003 and Rs. 5,49,08,777. Also, if the period as mentioned in the STR is considered which is from 25.05.2011 to 30.08.2012, the total credit amount is of Rs. 10.55 crore, which is less than the sales declared in ITR. It is pertinent to mention here that the Principal Officer has not submitted any books of accounts despite being contacted through summons and telephone. In the absence of any submission by the subject, the source of credits in the books remain unverified. Thus, the total deposits in respective AYs remains unverified, which is Rs. 11,30,13,003 for AY 2012-13 and Rs. 5,49,08,777 for AY 2013-14 respectively and is recommended for addition in relevant AYs. Suggestions to Assessing Officer: 12. In view of above, you are advised to verify genuineness of the source of fund and consider thereafter initiation of action under section 147 for escapement of income from assessment to the tune of Rs. 11,30,13,008 for AY 2012-13 and Rs. 5,A49,08,777 for AY 2013-14. Any kind of bank fraud, money laundering transaction or violation of any other law in force, is observed, you are advised to write to appropriate authorities informing the same.13. In case, jurisdiction over the case does not pertain to your office, the case may be forwarded to correct jurisdiction under intimation to this office. This issues with the approval of Pr.DIT(Inv.}-2, New Delhi. Dy. Director of Income Tax(Inv.), Unit-2(3), New Delhi Encl: Bank Statement Copy to: (1) Pr.CIT-1, Amritsar as Se (2) AddL.CIT, Range-2, Amritsar RA Dy. Director of eas Unit-2), New Delhi