Income Tax department conducts survey on Hinduja Group entities for alleged tax evasion

The Income Tax department has conducted survey in some entities of Hinduja Companies in different cities including Mumbai. The operation comes as part of a tax evasion investigation.

IT dept survey

As per CNBC-TV18, it is believed that Ashok Hinduja, the Chairman of Hinduja Group of Companies (India) is also covered under the survey. As per PTI, the operation adheres to I-T law for survey operations which is confined to office premises. They also indicated the tax department's action connects with the General Anti-Avoidance Rules (GAAR).

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General Anti-avoidance Rule (GAAR) is a concept which generally empowers the Revenue Authority in a country to deny tax benefit of transactions or arrangements which do not have any commercial substance and the only purpose of such a transaction is achieving the tax benefit.

Hinduja group's performance

Hinduja group which owns IndusInd Bank, Hinduja Leyland Finance and Hinduja Bank (Switzerland), is diversifying and has plans to get into the new tech, digital and fintech as part of its new phase of growth and fill gaps through acquisitions to have complete offerings in the BFSI sector.

Hinduja Group Solutions witnessed a 92% decline in consolidated profit to ₹18.4 crore for the second quarter ending on September 30, 2023. This is substantially down from the ₹222.88 crore recorded in the corresponding period last year.