Aamby Valley courts more trouble, gets Rs.24,000 crore tax notice

0
592

There seems to be no end to Subrata Roy’s woes, with the IT department slapping a Rs.24,646 crore notice on Aamby Valley for non-payment of tax on account of hidden income, according to a report by Times of India.

Aamby-Valley-tax
The IT notice will hit the company hard, with it already struggling to repay SEBI.

The notice, for the assessment year 2012-13 comes after four years of investigation by the IT department. The crux of the notice is an increase in the income of Aamby Valley during the year. The investigation revealed that Aamby Valley Limited (AVL) did not showcase their true income, which was Rs.48,085.79 crore higher than the one shown by the company.

While Aamby Valley Limited’s returns for 2012-13 indicated a loss of Rs.14.86 crore, investigations by the department showed that the actual income was over Rs.27,000 crore. AVL had channelled this income through eight subsidiary companies and eight special purpose vehicles, showing losses on its individual balance sheet. It later merged these special purpose vehicles with the company.

The IT department sent an assessment order to Sahara on March 30, 2016, with the company approaching the Debt Resolution Panel (DRP) as a measure of protest. The assessment order had raised the income of AVL by Rs.27,549 crore.

The move, however, backfired for Sahara, with the DRP raising this amount to Rs.48,085.79 crore, leaving the company with tax arrears of Rs.24,646 crore.

Sahara has been plagued with a number of issues over the past few months, with the Supreme Court ordering the sale of Aamby Valley after the company failed to pay Rs.5,000 crore this month.

Read more: SC asks Sahara to deposit Rs.5,000 crore by April

LEAVE A REPLY

Please enter your comment!
Please enter your name here