The I-T department conducted a survey action at five locations of Shree Cement in June 2023 in connection with the deductions claimed under section 80IA of the Income Tax Act for the April 2014 to March 2023 period.
The income tax department has claimed ₹4,000 crore tax demand from Shree Cement following a survey that highlighted that the company wrongfully claimed ₹8,500 crore from April 2014 to March 2023 period.
The I-T department conducted a survey action at five locations of the company in June 2023 in connection with the deductions claimed under section 80IA of the Income Tax Act for the April 2014 to March 2023 period.
The raids took place at the company’s bases in Beawar, Jaipur, Chittorgarh, and Ajmer.
The Ministry of Corporate Affairs (MCA) had issued an inspection order against the Kolkata-based cement manufacturer on reports of improper income tax filings. The order was issued taking note of issues such as party transactions, corporate governance matters and issues pertaining to improper income tax filings.
A survey action of the I-T department is an investigative procedure carried out to ascertain the actual income earned by a tax payer for a financial year.
However, Shree Cement has dismissed any tax evasion reports. The alleged tax evasion, according to the reports, is said to be the biggest ever to date.
The company had said: “Income Tax Department is conducting a survey at our premises, and the company’s management team is available and extending full cooperation to the officials. The information as required by the officials is being made available.
Shares of Shree Cement are currently trading 4.21% lower at ₹27,165 on the NSE. The stock has also turned negative so far this year.