The income tax department on Wednesday conducted search operations on multiple premises of the country’s largest two-wheeler maker, Hero MotoCorp. Tax officials said the search operations were part of a tax evasion investigation against the firm. The operations started in the morning hours.
The company, however, issued a statement later in the day, terming it a “routine inquiry, which is not uncommon before the end of the financial year”.
Offices and residential premises of the company, including that of chairman and CEO Pawan Munjal located in Gurugram (Haryana), Delhi and a few other locations were being covered, the tax officials said. A team of officials looked at financial documents and other business transactions of the company and its promoters.
It was not known if any documents were seized during the operations.
Under the income tax Act, if only the business premises are inspected, it’s called a ‘survey’ where only books of accounts are examined. If residential locations are also inspected, it is termed ‘search operations’ where certain documents could also be seized.
“Officials from the income tax department visited two of our offices in Delhi and Gurugram and the residence of our chairman & CEO Pawan Munjal on Wednesday. We have been informed that this is a routine inquiry, which is not uncommon before the end of the financial year,” the company said in its statement.
It further said Hero MotoCorp is an ethical and law-abiding corporate, and maintains the highest standards of impeccable corporate governance. “In keeping with this philosophy, we are extending our full cooperation to the authorities. We reassure all our stakeholders that it continues to be business as usual,” the statement said.
Hero MotoCorp became the world’s largest two-wheeler manufacturer in 2001 in terms of unit volume sales in a calendar year, and has maintained the title for the past 20 consecutive years. Till date, it has sold over 100 million units across domestic and international markets.
Led by Pawan Munjal, the company has presence across 40 countries spanning Asia, Africa, and South and Central America.
The company continues to have a leading position in the domestic two-wheeler segment.
It was not known whether any documents were seized during the operations.
Under the income tax Act, if only the business premises are inspected, it’s called a ‘survey’ where only books of accounts are examined. If residential locations are also inspected, it is termed ‘search operations’ where certain documents could also be seized.
“Officials from the income tax department visited two of our offices in Delhi and Gurugram and the residence of our chairman & CEO Pawan Munjal on Wednesday. We have been informed that this is a routine inquiry, which is not uncommon before the end of the financial year,” the company said in its statement.
It further said Hero MotoCorp is an ethical and law-abiding corporate, and maintains the highest standards of impeccable corporate governance. “In keeping with this philosophy, we are extending our full cooperation to the authorities. We reassure all our stakeholders that it continues to be business as usual,” the statement said.
Hero MotoCorp became the world’s largest two-wheeler manufacturer in 2001 in terms of unit volume sales in a calendar year, and has maintained the title for the past 20 consecutive years. Till date, it has sold over 100 million units across domestic and international markets.
Led by Pawan Munjal, the company has presence across 40 countries spanning Asia, Africa, and South and Central America.
The company continues to have a leading position in the domestic two-wheeler segment.