Welspun hid R115 cr: I-T
Home furnishings multi-national company, Welspun, has concealed income of Rs 115 crore, income tax (I-T) authorities found during raids on the company’s premises over the last 48 hours.mumbai Updated: Oct 16, 2010 01:30 IST
Home furnishings multi-national company, Welspun, has concealed income of Rs 115 crore, income tax (I-T) authorities found during raids on the company’s premises over the last 48 hours.
The raids, conducted at more than 15 or the company’s offices in Mumbai, Gujarat, Delhi and Orissa, concluded on Friday.
A senior I-T officer, requesting anonymity because he is not authorised to speak to the media, alleged that the company concealed income by showing excessively high depreciation in their books of accounts, thus showing lesser profit and evading tax.
Officials from Welspun refused to comment on the raids.
Companies claim a certain percentage of depreciation on the purchase of assets. Taxmen alleged that Welspun inflated the cost of assets purchased, which, in turn, increased the amount of depreciation on them.
“This reduced their profit and hence they avoided paying the taxes they were liable to pay,” the officer said.
He said the department has evidence that the depreciation claim was inflated.
The I-T authorities are still going through the account books to find out if there are any more discrepancies.
The officials are also going through details of various investment companies that, they suspect, Welspun had used to rotate money.
“We are waiting to see if the company can explain its dealings with these investment companies,” the officer said.
During the raids, the I-T team found two bank lockers, which are yet to be opened. “We suspect there could be cash and jewellery in these lockers. We will open it in a few days,” the officer said.
The I-T officials had found Rs 60 lakh in cash during raids on the company’s premises in Mumbai and Gujarat on Thursday.
The Welspun group has varied business interests including SAW (submerged arc welded) pipes, yarn, steel, steel pipes, infrastructure, energy, and oil and gas.