I-T conducts searches on textile, realty firms
The income tax (I-T) authorities resumed search operations on Wednesday after a one-month gap. The operations were conducted on a textile unit and a real estate company.mumbai Updated: Jan 12, 2012 01:44 IST
The income tax (I-T) authorities resumed search operations on Wednesday after a one-month gap. The operations were conducted on a textile unit and a real estate company.
Searches and surveys had not been taking place since December 5, following a protest by I-T officials over pending promotions. The protest was suspended on January 3.
The investigation wing of the department conducted searches on Mandhana Industries Ltd and Sunteck Realty Ltd to detect possible tax evasion.
Searches were conducted on around 20 premises belonging to these two companies in Mumbai and Thane.
The searches began early in the morning and went on till late night. I-T officials said that the searches were conducted following information that these companies allegedly inflated expenditure to reduce profit in their account books. “Reducing profit helps in evading tax,” an I-T official said.
Manish Mandhana of Mandhana Industries said the I-T authorities must have gone to a couple of the company’s premises to check something, but it was nothing serious. Mandhana manufactures clothing for an initiative of a popular Bollywood actor. A spokesperson for Sunteck refused to comment.