 "Alkem Labs sinks 14% to 3-month low on reports of tax evasion of Rs 1000 cr")
Shares of Alkem Laboratories (Alkem) slumped 14 per cent on BSE to touch the lowest level in nearly three months in Monday's trade after reports said that the income tax department found tax evasion of over Rs 1,000 crore by the company.
The stock sank to an intra-day low of Rs 4,653 as of 1:15 pm on BSE, its lowest since December 5 when it closed at Rs 4,652.
A report by India Today said the income tax department found that the company has claimed bogus and excessive deductions for its manufacturing units in Sikkim, the amount of which is said to be over Rs 1,000 crore.
Many such deductions were claimed under various special sections like 80-IC, the report said, citing sources.
Alkem Labs, on its part, has refuted the allegations, calling them factually incorrect.
"The company had fully cooperated with the Income Tax department officials during their survey proceedings in September 2023. We subsequently received certain queries from the IT department, which have been addressed," it said in a filing.
At 2:40 pm, post the clarification, the stock was trading off lows having partically recovered. It was down 6 per cent at Rs 5,064.
"The company had fully cooperated with the Income Tax department officials during their survey proceedings in September 2023. We subsequently received certain queries from the IT department, which have been addressed," it said in a filing.
At 2:40 pm, post the clarification, the stock was trading off lows having partically recovered. It was down 6 per cent at Rs 5,064.
The IT dept action, as per the India Today report, came after the department conducted surveys on Alkem's offices and premises in September last year on receiving intelligence with respect to large-scale tax evasion.
The investigation, it said, continued with statements being recorded from concerned officials and data and balance sheets being checked and investigated in the following months.
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The report also added that IT dept investigations also found that Alkem had been paying doctors and medical practitioners to get prescriptions written for their manufactured drugs.
The period for which the investigation was conducted revealed over hundreds of crores worth of payments made to doctors by Alkem. The probe results would lead to heavy penalties for the company, the report claims.