At a time when Mumbai-based full-service airline Jet Airways is grappling with financial woes, the income tax department has began conducting inspection of the company’s books, according to sources.
The Naresh Goyal-promoted airline, confirming the development, said in a statement: “Income Tax officials are conducting a survey at Jet Airways’ office”. The surveys were conducted, under Section 133A of the I-T Act, in connection with charges of alleged siphoning of funds by the airlines to firms floated by it in Dubai, sources told The Indian Express. “The tax department is conducting surveys at four business premises — two in Mumbai and two in New Delhi. The company’s books of accounts are being looked at,” a senior income tax official told The Indian Express.
The airline is already under the scanner of the Securities and Exchange Board of India and the Ministry of Corporate Affairs. For the June-quarter, Jet Airways had reported a net loss of Rs 1,323 crore.
The results were announced on August 27, against the earlier scheduled date of August 9, and has been under the regulatory lens for deferring its results. Last month, the Corporate Affairs Ministry had ordered an inspection of “books and papers” of the carrier.
In Mumbai, the tax survey covered the corporate office of Jet Airways, among other places. A tax survey is different from a tax search as it is only limited to business premises of an entity and mostly involves checking of books of accounts of a firm among other things.
Wednesday, Jet Airways’ share ended trading at Rs 243.15 on the National Stock Exchange, down 4.22 per cent from the previous close. During the intra-day trade, the scrip touched its 52-week low of Rs 238.50.