Hero MotoCorp tax case: I-T finds Rs 800 cr siphoned off via shell firms

The department also found that 10 acres of farm land in Delhi was purchased through a few paper companies

An expenditure of more than Rs 800 crore on the books of Hero MotoCorp was not for purposes of business but made for a service from an event management company, which allegedly siphoned off the amount, according to an income-tax department probe.

The siphoning off was done through shell firms.

“Such claims towards non-business purposes are inadmissible expenditure under the provisions of the Income-tax Act, 1961,” the Central Board of Direct Taxes (CBDT) stated on Thursday without naming the company.

The statement follows three days’ extensive searches on the premises of the company, its Chairman and Managing Director Pawan Munjal,