Income tax claims Hero MotoCorp made over Rs 1,000 crore ‘bogus expenses’
By Team Newsable | First Published Mar 29, 2022, 4:51 PM ISTThe development comes after the government conducted search and seizure raids on March 23 at facilities in Delhi-NCR pertaining to Hero MotoCorp and its managing director Pawan Munjal, as well as other key officers of the firm.
According to the Income Tax (I-T) Department, two-wheeler company Hero MotoCorp incurred over Rs 1,000 crore in false charges and committed several offences totaling Rs 100 crore in transactions for a farmhouse in Delhi.
The development comes after the government conducted search and seizure raids on March 23 at facilities in Delhi-NCR pertaining to Hero MotoCorp and its managing director Pawan Munjal, as well as other key officers of the firm.
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During previous inspections, the I-T Department collected incriminating evidence in the form of hard copy papers and digital data, according to news agency ANI. According to the evidence gathered, the two-wheeler manufacturer logged phoney transactions, made large unexplained cash expenditures, and acquired accommodation entries totaling Rs 1,000 crore.
According to the ANI inputs, the I-T Department also discovered evidence of cash transactions totaling more than Rs 100 crore in the acquisition of a farmhouse on the outskirts of Delhi. Munjal acquired a farmhouse in Chhattarpur where the market price was altered to minimise tax and used black money to pay Rs 100 crore in cash, according to section 269 SS of the IT Act.
Also Read | Income Tax department conducts searches at multiple premises of Hero Motocorp
In a subsequent statement, the firm stated, "On Wednesday, officials from the Income Tax Department paid visits to two of our offices in Delhi and Gurugram, as well as the home of our Chairman and CEO, Dr. Pawan Munjal. We've been told that this is a standard investigation, which is frequent at the conclusion of the fiscal year."
"Hero MotoCorp is an ethical and law-abiding company that upholds the highest standards of excellent corporate governance. In accordance with this concept, we are offering the authorities our complete assistance," the statement continued.
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