Income Tax Raids

Lets use this thread to record companies subjected to Income Tax Raids.

Its important that we quote the source of the news and provide the available links. Also if the company has made any clarifications in this regard by way of announcement at stock exchanges, we should quote that. This is not to pass any judgement on the companies involved, but to make for better-informed decision making (if sometimes valuations look mysteriously alluring).

Must Dos, while Posting:

  1. Quote Source(s), and provide Links (use official links as mentioned below)
  2. Prefer official sources such as Stock Exchange Announcements, SEBI Orders over say Newspaper Reports
  3. Corp Filing | Corporate Filing and Dissemination system (maintained by BSE, NSE)
  4. Watchout Investors (maintained by Ministry of Corporate affairs under the Investor Protection Fund)

We can always discuss a particular case and its implications more if anyone wishes. Just make sure you use the “Reply to this” button. While posting for a new company always use the “Quick Reply” button.

Housing Development and Infrastructure (HDIL)

HDIL Stock Exchange Announcement on Income Tax Raid

Housing Development & Infrastructure Ltd (HDIL) has informed BSE that the Income tax Department had conducted a raid on HDIL office premises and promoters residences on 10th & 11th September 2009. During the course of raid, HDIL has agreed to offer approx. Rs. 350 Crore as income to be booked in remaining quarters of financial year 2009-10. Income of Rs. 350 Crore as calculated by Income Tax Department are based on initial entries in books of accounts mostly relating to current financial year i.e. 2009-10, which Company would have irrespectively booked during the current financial year on completion of transaction and taxes paid as per provisions of Income tax Act.

Further, the Company would also clarified that, according to the Company there is no undisclosed income, tax evasion, levy of penalty etc for any previous years or current year as reported in various newspaper and media. There will not be any substantial change to tax liability or revision in income booked of earlier accounting years.

The raids were conducted on 10 and 11 September 2009, while the company submitted this clarification to the stock exchange on 14 September 2009.

ABG Shipyard

ABG Shipyard Stock Exchange Announcement on Income Tax Raids

ABG Shipyard Ltd has informed BSE that the Income Tax Department had conducted search operations at the premises of the Company and officials of the Company on October 07 and 08, 2009. The search operations concluded on October 08, 2009.

The Company believes that it has complied with income tax laws and that the income Tax authorities have made no claims against the Company pursuant to such search operations.

The company is reported to have admitted pending tax liability of 122.4 Crores. However company officials have denied it.

Just use the Satyam model guys. If the stock falls below Rs.5 borrow, leverage up or steal. Put everything in it. A little known fact, Indian corporate law is one of the toughest in the world in terms of bankruptcy or dissolution. That is, it is extremely difficult to pursue either in India.

Posted by Shivank at September 29. 2010

Just use the Satyam model guys. If the stock falls below Rs.5 borrow, leverage up or steal. Put everything in it. A little known fact, Indian corporate law is one of the toughest in the world in terms of bankruptcy or dissolution. That is, it is extremely difficult to pursue either in India.

What about Kingfisher Airlines, Its about to go for bankruptcy.

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