Shipbuilding firm’s Rs 125 cr concealed income recovered
The Income-Tax (I-T) department uncovered Rs 125 crore in concealed income from raids on ABG Shipyard Limited, a leading shipbuilding and repair company, reports Manish Pachouly.mumbai Updated: Oct 10, 2009 01:06 IST
The Income-Tax (I-T) department uncovered Rs 125 crore in concealed income from raids on ABG Shipyard Limited, a leading shipbuilding and repair company.
On Wednesday, the investigation wing of the I-T department raided 25 premises of the firm and its owners in Mumbai and Gujarat, which concluded on Thursday night.
The authorities sealed four bank lockers belonging to the firm owners and their families.
“The lockers would be opened in about a fortnight,” an I-T official said, requesting anonymity for lack of authorisation to speak to the media.
The official said during the raid, the firm made voluntary disclosure of the concealed income. “But we will still investigate to find if there is more concealed income,” he added.
But Dhananjay Datar, chief financial officer of ABG Shipyard Limited, said the firm has not made any disclosure.
The department will also check the last six years’ returns filed by the firm to verify if the details declared are accurate.
The official said that in addition to the report on voluntary disclosure, a separate report would be prepared containing details of the findings.
“Both the reports would be sent to the respective assessment officer of the department who would issue a tax demand notice,” he added.
However, Datar said the I-T department has not issued any demand notice to the firm. “ABG is a fully tax compliance company,” he said.
The official said, as per the regular rate, the company would be required to pay Rs 42 crore as tax. Besides, the department could levy hefty penalty that could be 100 to 300 per cent of the tax amount.
What had alarmed the officials most was the seizure of documents related to purchase of a plot in Parel in 2007. Though the value of the plot was around Rs 65 crore, the company had allegedly shown its value in records as around Rs 200 crore.
This is the second biggest declaration in the city this year.
Last month, the authorities had got biggest disclosure of concealed income, worth Rs 350 crore, from raids on real estate firm Housing Development and Infrastructure Ltd.