This is the first time the Jet Airways founder is summoned for alleged irregularities in the company.
Jet Airways founder Naresh Goyal is going to be questioned by the income tax department in relation with an alleged case of tax invasion, sources have revealed to The Economic Times. This happens to be the first time Goyal is summoned for alleged irregularities in the company.
Moneycontrol could not independently verify the report.
The assessment wing earlier received the investigation report with records of irregularities that had taken place between Jet and its group companies in Dubai allegedly to evade taxes worth Rs 650 crore, sources revealed to the paper.
Jet reportedly paid commissions to its general sales agent in the gulf country every year. Goyal will be asked to provide an explanation for the said payments.
Such payments cannot be considered as allowable expenses as, according to the report, those are allegedly in excess of the Income Tax Act’s permissible business transactions.
“The survey was conducted at the time when Jet Airways was delaying the announcement of its June quarter result,” an income tax official told ET.
“These are excessive payments made with the intent to divert funds abroad, so as to evade taxes.”“The assessment wing is now carrying out the inquiry, and based on the findings, had summoned Goyal to explain the case,” another person said.
The investigation was completed in February after the investigation team had seized documents at Jet’s Mumbai offices in September 2018.
When a report of irregularities emerged in February, Jet Airways clarified to ET that such transactions were part of “duly audited and published financials”.
“Jet Airways reiterates that it has always complied with all regulatory and corporate governance requirements, as required by law, with respect to the transactions entered into with related parties,” it said at the time.Regarding the latest update, the company has declined to comment.The Great Diwali Discount!
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