The Hinduja group is on the income tax department’s radar for allegations of tax evasion. According to information received by Zee Media from important sources, the income tax department has imposed the provision of anti-tax avoidance on the group companies. However, the Hinduja group has denied those allegations.
Let’s look at the allegations of tax evasion and the timelines of the income tax department’s case against the business giant.
The case started when Hinduja Global Solutions (HGS) decided to sell its health business. Sources say the income tax department noticed something wrong with the tax on those profits. The tax authority estimates that the group made a profit of thousands of crores from this sale.
According to the investigation of the income tax department, this case is about tax evasion of 1,700 crore rupees. The tax authority alleges that an attempt was being made to save tax on the capital gain of around 1,000 crore rupees.
Sources say HGS merged with NXTDIGITAL’s loss-making media business to avoid paying tax by showing a loss. According to sources, many documents and evidence were found during the income tax raids on Hinduja group’s offices last year.
The tax department claims that Hinduja group offices’ survey shows the merger was actually a tax evasion plan. The director of IndusInd International Holdings Mauritius (IIH), who was a part of this merger, has come under the radar.
As the investigation progressed, Ashok Hinduja, the promoter of Hinduja group, came directly on the radar of the income tax department. The department alleges that the tax evasion scheme was carried out with his consent.
The tax authority reportedly also found unaccounted cash of Rs 1.5 crore when the group’s vice-chairman, AK Das, was raided.
When Zee Business sought clarification from the empire, the group replied that the process of the merger was as per the tax law. The group also said a proper legal response would be given if the tax authorities sent a notice.
Hinduja group acknowledged that some questions were raised in the income tax survey after the merger transaction.
What will be the next chapter of this high-profile corporate story of tax evasion allegations? That remains to be seen.
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