For a business’s profitable running, it is highly important for it/them to keep their accounts clean. As much as any corporate maintain a clean status, as long as it is growing and is taking an uphill path, the stats curve does bother others, be it competitors or any market observer. An organization that is going upwards and is making profits is bound to catch eyeballs from everywhere, wanted and unwanted both.
In a not so constructive series of such superfluous and disheartening events, an income tax raid was conducted in all the offices of ISPAT Industries across India. No denying of the fact that searches were conducted at company’s offices in Mumbai, Nagpur, Delhi and Kolkata as well as at the residences of the company’s managing director Vinod Mittal and a few key management officials too. The income-tax officials also conducted surveys in nearly 20 destinations of the company’s dealers across the country.
Income tax raids are the worst nightmare for any organization/company. This income tax raid at ISPAT was conducted because an eminent minister from one of the largest parties in the country and the largest opposition of the times stated the involvement of ISPAT in a case where they fraudulently were involved in tax evasions and a hefty sum of money was involved.
Amidst this redundant activity, the media as an affair of convention talked about and highlighted involvement of ISPAT Industries in the scam and was hell bent on proving that the income tax raid which was conducted was not just a routine activity where the IT department conducts such raids to only clarify the apprehensions any profiting company attracts; but that in the raid, certain documents were seized which were of severe consequence for ISPAT.
Meanwhile, nobody, after clarifications were seeked from the concerned higher authorities of both- the organizations involved and the income tax department, bothered to clear the facts to the larger audience and the whole world that it was a routine activity and maligning and defaming ISPAT was not one of the agendas. Hence, it is important to bring out the other side of the coin for everyone, and to clarify, ISPAT Industries Limited were not involved in any such tax evasion scam.
The search action under the provisions of Indian Income Tax Act, 1961 was conducted on ISPAT Industries Limited and its associate group companies in India in November’2010. During the course of search relating to the activities carried on by ISPAT Industries Limited no incrementing documents or material was found. During the assessment proceedings also no additional income was computed due to the search action. In respect of the associate companies the additions were made in respect of the legal issues and the said additions were contested before the Appellate Authority. The total additions made were not material. Thus no evidence of any tax evasion was found.
About ISPAT Industries Limited
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