Economic Times reported that the income tax department carried out a survey last week on two Mumbai based steel companies,after a tip off that these companies have not been offering their full income for taxation.
An I-T source said that the department officials carried out a survey on Lloyds Steel after it received information that the company has been inflating cost,largely by inflating the project costs.
Similarly,the same time,it also inflated sales turnover with the express purpose of availing loans from the banks.Besides,the income that has been suppressed had been infused into the company as capital through half a dozen shell companies.The Income tax officials,after a preliminary examination of the documents concluded that INR 400 crore to INR 500 crore have been concealed by the company.
A senior official of the company,however,denied the allegation and said that their books of accounts are in order.The Lloyds Group is into manufacturing steel and related products.
The company produces a range of hot rolled and galvanized products in a plant at Wardha in Maharashtra.Interestingly,the Miglanis of Uttam Galva Steel on December 28th,it has taken over the loss making Lloyds Steel.
Uttam Galva,another steel company based in Mumbai,had admitted that there had been a survey in their premises but the company is cooperating with the I-T officials
