IT department detected huge tax evasion by two steel companies

 

Mar 6, 2010

Income Tax department is understood to have

detected an evasion of Rs 502 crore by two

major steel manufacturers after it conducted 

searches and surveys against them

in various parts of the country. 

The department has detectedevasion in two companies– 

Bhushan Steel and Bhushan Power and Steel after it undertook
action at 11 premises in cities like Delhi , Chandigarh, Ghaziabad,
Raigarh, Ranchi, Mumbai and Kolkata .

“The companies have admitted to tax evasion to the tune of Rs 502 crore.
The investigations are still on and prohibitory orders have been issued
at various locations of the companies,” claimed an IncomeTax
department source, who did not wish to be named.

When contacted, a Bhushan Steel official said he was unaware
of the development and an executive of Bhushan Power and
Steel said he had no knowledge of the matter.

According to sources, thetax department has detected evasion
under heads like introduction of unaccounted investments in
share capital of group companies, investments in properties
and booking bogus expenditures in companies.

The search and survey began on Wednesday at 11 premises
of the two companies and the operation was still on.


While Bhushan Steel is led by Brij Bhushan Singhal and
his son Neeraj Singhal, Bhushan Power and Steel is headed
by Brij Bhushan Singhal’s elder son Sanjay Singhal.