Lilavati trustees’ statement recorded
The income tax (I-T) department continued its searches at Lilavati Hospital in Bandra on Tuesday. The department had begun its searches on Monday to probe financial irregularities.mumbai Updated: Apr 13, 2011 01:30 IST
The income tax (I-T) department continued its searches at Lilavati Hospital in Bandra on Tuesday. The department had begun its searches on Monday to probe financial irregularities.
On Tuesday, authorities recorded the statements of 11 people including the trustees and senior hospital authorities. The department is also coordinating with the Food and Drug Administration (FDA), which had, in February, investigated the quality of drugs purchased by the hospital.
During searches on Monday, I-T authorities had found some bulk medicine purchase bills of around 400 smalltime medicine dealers.
However, I-T officials found that the cost of the medicines had been inflated.
“We will seek the FDA’s probe report to help in our investigations,” a senior I-T official said requesting anonymity as he is not authorised to speak to the media.
He added that the department was verifying from how many of dealers the hospital had been purchasing medicines and if any of them were used only for procuring bills. “We are also figuring out by how much the bills were inflated and for how many years this was going on,” the official said.
The department suspects that much of the tax evasion was done by procuring inflated bills over the years.
Officials said inflated bills hiked expenditure in account books, reduced profit and helped in evading tax.
The department, however, could not figure out the exact amount of concealed income. “The scrutiny of seized account books, computer records and documents is on. Once we scrutinise these, we will be able to reach a conclusion on the amount of concealed income,” the official said.