Tightening its scrutiny of cash deposits post note ban, the tax department is closely looking at any business entity showing sudden spurt in cash sales in November and December in a bid to detect possible tax evasion.

In every case of abnormal increase in cash sale, the tax department will match the sales and inventory data claimed by any company, enterprise or trading establishment with those of prior months to find out if black money was being camouflaged as business sales, a senior government official said. On the taxman’s radar are traders and business establishments ...