Tax Dept. conducts search on two major mobile manufacturing Cos; more than Rs. 5500 crore are under scanner
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- Last Updated on 4 January, 2022
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Press Release, dated 31-12-2021
The Income-tax Department has carried out search and seizure operations pan India on 21.12.2021 in the case of certain foreign controlled Mobile Communication & Mobile Handset Manufacturing Companies and their associated persons.
The search action has revealed that the companies have made remittances in the nature of royalty, to and on behalf of its group companies located abroad, which aggregates to more than Rs.5500 crore. The claim of such expenses does not seem appropriate in light of the facts and evidence gathered during the search action.
Further, the companies had not complied with the regulatory mandate prescribed under the Income-tax Act, 1961 for disclosure of transactions with associated enterprises. Such lapse makes them liable for penal action under the Income-tax Act, 1961, the quantum of which could be in the range of more than Rs.1000 crore.
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