Diamond Source to Transactions: 5K Notices, 2K Crore Under Cross-Verification

The enthusiasm for the diamond bureau’s highly significant cross-verification of diamond transactions for the city has triggered concerns in the diamond industry. In the last two years, several diamond companies in the city have come under scrutiny in search operations, leading to the issuance of around 5,000 notices to business-industrialists, including those in Surat and Mumbai, for cross-verification.

Many traders are also under investigation, and in the coming times, all of these statements will also be taken. Information suggests that notices amounting to approximately 100 billion rupees have been issued, making it to the radar of the IT department as transactions worth crores are being closely monitored. The tension among diamond traders has increased as penalties of up to 100% may be imposed.

C.A. Tinish Modi states that the cross-verification entries that fall under the Department of Entry need to be submitted to the respective parties for cross-verification. These entries are not bogus, and their verification is carried out before the notice is issued.

Experts Predict Potential Demand in the Future

Notices related to cross-verification contain bogus entries. If proven, the case is selected in the assessment, and the party that claims the diamond’s demand will be victorious in the appeal. Notably, entries showing expenses in the diamond industry’s dealings are provided to prove that they are not bogus.

Officials are concerned that these are not bogus as creating entries for showing expenses in the diamond industry has led to a decrease in tax payments.

Moreover, the process of submitting statements after buying and selling diamonds with two numbers has also begun, increasing activities for the authorities. It is notable that there is fear that fake entries may not be detected by creating documents related to property transactions in the diamond industry.

Concerns Rise as Only Two Entries in Several Years Trigger Suspicion

In the diamond industry’s transactions involving large sums, mostly two-number parallel transactions were caught. The Raf diamond did not even show entries in the book and later, after being polished, was sold in the market. Even transactions were mainly stuck in deals.

IT has received nearly 10,000 entries in such diamond dealings, where cross-verification is still ongoing. Currently, notices have been issued in 5,000 cases, where parties involved in diamond transactions have received notices concerning documents related to ownership or property relationships. It is worrisome that entries that have been made actually involve significant transactions.

Concerns persist that the entries made truly indicate transactions, and why, for the department, there is doubt that some traders have shown only two entries in the last two years, and significant transactions have been made in them. After such entries, the bank accounts were closed.

Increased Activity Expected as Range Survey Begins

Currently, investigations into major diamond and silver scams are ongoing in the income department, but IT sources say that there has been no survey by Range for the last four years in Surat. Earlier, constant surveys were conducted by Range in the diamond and builder lobby. In the coming times, the prospect of starting the survey of this service again is also seen, which is currently visible. Therefore, in the future, the department may reveal major revelations, bringing significant openness to the department.