Income Tax, Excise see spike in gold sale in TN

Income Tax and Central Excise Intelligence authorities today said they found discrepancies and a disproportionate spike in the sale of gold jewellery in Tamil Nadu after demonetisation of Rs 500 and Rs 1000 currency notes.
While tax authorities are continuing their searches which began yesterday in some of the jewellery outlets, Excise department officials today concluded their verification exercise.
A senior Income Tax department official said, "We have seen discrepancies" in respect of accounts of 12 entities -- jewellers and bullion traders -- on whose premises' raids were conducted. Discrepancies include mismatch vis-a-vis accounts, sale and concealment of some trade-related aspects from the accounting system.

Asked if any seizures were made, he told PTI, "We cannot say anything about it now...We have evidence...We are taking action against them in accordance with the Income Tax Act."
Central Excise Intelligence sources here indicated that during checks, disproportionate sale of gold jewellery was seen in respect of many of the jewellers whose accounts were verified.
Across Tamil Nadu, CEI verified the accounts of over 40 jewellers beginning November 10. The verification exercise was today completed and further legal action will be contemplated after fully studying the issue, they said.