JSW offices ‘searched’ for possible tax evasion

The investigation wing of the income tax department, Mumbai, conducted prolonged search operations at two of JSW Group’s offices —- the corporate office in Kamala Mills Compound and Jindal Mansion at Peddar Road — on Wednesday.

The searches, which began early Wednesday morning, continued till late evening.

I-T officials refused to share details on the operations. They clarified, however, that these were “search operations and not raid.”

“The department conducted search operations at two of their offices in Mumbai. It is underway and it will take time for things to crystallise. Before that, I can’t say anything,” said BP Gaur, director general, investigation, I-T.

An official who was part of the team involved in the operations, said intensive search was also carried out at JSW’s offices in Bangalore and Ratnagiri.

“The I-T department is investigating if the company wrongly claimed any tax deductions and presented inflated expenses when making purchase orders, thereby evading tax,” he said.

A source said around 10-15 I-T officials visited the JSW premises in Mumbai at around 8 am and continued their search till very late in the evening. Barring the finance department, which had to share details demanded by I-T officials, all other employees were asked to leave, the source said.

“All I have to say is that it is a part of the usual survey wherein the officials wanted to verify and check all files and records,” said Sharmila Banerjee, spokesperson, JSW Group.

She said it is a regular process and there is nothing unusual about it. The only difference is that the department wanted to check the records personally. “Our finance department is assisting the department in all their queries,” Banerjee said. JSW has always conducted business cleanly and has always been very transparent, she said, adding that the company is readily cooperating.

A former I-T official who was involved in a number of raids
said a search is usually an I-T survey where the authorities
do not have the right to seize cash, stock or any other valuable item.

The scope of a search operation is limited to scrutinising
the books of accounts and making identification marks. A survey can be authorised by even an additional commissioner of the department.