Wednesday, January 22, 2020

Taxman orders special audit of Jet Airways

Mumbai: The income tax department has ordered a special audit of Jet Airways, after investigations by its arms found a number of suspicious-looking transactions in the accounts of the now-grounded airline, people in the know said.
 The department has engaged chartered accountancy firm Shah & Taparia to carry out the special audit, the people said.
 “While the investigation wing in its report has detailed out tax irregularities of over Rs 880 crore, the assessment wing has found a lot of other suspicious transactions which amount to over Rs 5,000 crore … these transactions require a thorough probe and a special audit has been ordered,” said an official in the know.
 According to the provision that allows the assessing officer (AO) to get the accounts of an assessee audited by a chartered accountant, such a decision can be made based on the complexity and volume of accounts, where there are doubts about the correctness of the accounts and multiplicity of transactions, and when the assessee is engaged in a specialised business activity. One of the main reasons behind calling for the special audit is the alleged non-cooperation by the airline’s promoter, Naresh Goyal, said the people.
“Goyal has always evaded the questions asked by the AO and has claimed ignorance. He has blamed everything on the erstwhile management claiming that he wasn’t managing the day-to-day affairs of the company and therefore wasn’t aware of the various transactions with which he was confronted,” said an official. “Also, with the erstwhile employees, who were responsible for preparing the audit and managing the affairs of the company, no more associated with the grounded airline, it was difficult to understand certain transactions,” the official added.
 22/01/20 Rashmi Rajput/Economic Times
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