The Income tax department has reportedly imposed a fine of ₹4,000 crore on Shree Cement after a survey that indicated the company inappropriately claimed ₹8,500 crore over the past nine years.
The IT department conducted a survey action at five different locations in June last year. The survey was conducted in connection with the company’s deductions claimed under section 80IA of the Income Tax Act for the April 2014 to March 2023 period, reported Economic Times.
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Amid the reports of the alleged tax evasion, Shree Cement shares have slumped by as much as 4.4% since morning. The company shares were trading 4.36% lower at ₹27099.9 per share on BSE at 2:00 pm on Friday.
The business daily reported that the raids took place at the company’s bases in Beawar, Jaipur, Chittorgarh, and Ajmer. According to the ET report citing the report, the company is using fake bills to claim deductions under section 80IA of the Income Tax Act.
The bogus tax claims were made in the name of the installation of a solid waste management plant. The company had claimed ₹7,000 crore for the installation of a plant that doesn’t exist on the ground, ET reported citing the IT survey.
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Similarly, the company made claims for the water treatment plant and power supply. However, no water treatment plant was installed in the company. Mint doesn’t independently verify the ET claims on the IT survey report.
Till now, there has been no official statement made by the company or by the Income tax department in the matter. However, the alleged tax evasion is said to be the biggest to date.
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Published: 05 Jan 2024, 02:06 PM IST