Income Tax and Central Excise Intelligence authorities on Saturday 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

While tax authorities are continuing their searches which
began yesterday in some of the jewellery outlets, Excise department officials on Saturday 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 said, “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 on Saturday completed
and further legal action will be contemplated after fully studying the issue,
they said.