Software firm discloses '27 cr concealed income
The income tax (I-T) authorities got voluntary disclosure of Rs 27 crore worth concealed income from Vakrangee Softwares Limited, a company listed with the Bombay Stock Exchange and National Stock Exchange.mumbai Updated: Dec 15, 2010 02:13 IST
The income tax (I-T) authorities got voluntary disclosure of Rs 27 crore worth concealed income from Vakrangee Softwares Limited, a company listed with the Bombay Stock Exchange and National Stock Exchange.
The department had on Monday conducted searches on the company. The searches concluded on Tuesday morning.
A senior I-T officer, on condition of anonymity as he is not authorised to speak to the media, said the company gave voluntary disclosure of concealed income for the past two years (2008-2009 and 2009-2010).
“However, we would go through last six years’ returns filed by the company and scrutinise the same,” the officer said. He added that on scrutinising past six years’ returns the amount of concealed income could go up.
During searches, the department had found that the company was showing artificial expenses in account books.
The department had found that the company had showed artificial purchase of software worth around Rs 70 crore from two non-existing companies.
However, the department found that the company also showed artificial sale of software to increase the turnover. Tax authorities believe this could have helped in attracting investors and pushing up the company’s share prices.
As per the company’s official website, its annual turnover for 2009-2010 was more than Rs 425 crore.
“When we questioned the company authorities about artificial purchase [of Rs 70 crore], they told us that it was not concealed income as some of the sales of software, shown in records, too are artificial,” the officer said. The department also seized Rs 21 lakh in cash that was found during searches.
On Tuesday, a statement signed by the company’s managing director Dinesh Nandwana said that the I-T authorities had conducted search to ascertain the correctness of various transactions. “During the search there were queries and clarifications raised and sought by the authorities. All such queries and clarifications were answered and the I-T department authorities were fully satisfied with the clarifications provided by the company,” the statement said.