I-T raids on Wockhardt, Cipla reveal tax evasion
THE Income-Tax Department conducted search operations in two major pharmaceutical companies and a bakery chain. The pharma majors are Cipla and Wockhardt, while the bakery chain is Monginis, a sister concern of Wockhardt, a senior I-T official told Business Line.
The department had seized Rs 67 lakh in cash and jewellery worth Rs 62 lakh, apart from incriminating documents and papers. Fourteen lockers have been sealed.
According to a press release issued by the I-T Department on Wednesday, strong evidence of tax evasion by making excess claim of deduction under section 80 I-A of the IT Act was found. The I-T department had detected excess claim to the tune of Rs 10 cro re. With search operations to continue for next four to five days, the figure was likely to increase, the official said.
These pharma companies claim more than Rs 40 crore every year under the 80 IA of the IT Act, the release said.
More than 30 premises, both residential and business of the companies involved, including the top management, were searched in Mumbai. In addition, the factories, research centres and other business premises of these companies situated at Pune, Bangalore , Aurangabad, Ankleshwar, Goa and Solapur were also searched.
According to the release, bogus purchases running into several crores were found to have debited in the profit and loss account to suppress the taxable income by the pharma companies. The said purchases were made from various concerns which were either n on-existent or have nothing to do with the business of sale/purchase of bulk drugs.
The concerns were said to be involved in the business of giving bogus bills only, the release said.
The promoters of one of the pharma companies was found to have undisclosed deposits to the tune of Rs 2 crore in banks abroad. Incriminating papers indicating unaccounted expenses of more than Rs 50 lakh were found in the case of one of the directors of a pharma company.
In the case of the bakery owner, incriminating documents containing complete costing of different items being produced by the bakery were found which prima facie indicated concealment of income of several crore of rupees in recent years.
Cash amounting to Rs 35 lakh was recovered from the owner. He was also found to have advanced cash loans of several lakhs of rupees to various parties, the release said.
Read full article: The Hindu Business Line
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