Tulip twist: Tax raid or routine check?

Tulip Telecom, a provider of data telecom service and IT solutions recently

came under the scanner of the Income Tax Department for allegedly evading taxes

to the tune of a couple of crores. As per a reliable source, the raids began on

September 24 and are still underway.

When contacted, Lt Col HS Bedi (VSM) Chairman and MD, Tulip Telecom confirmed

the visit from tax officials.

Explaining the reason behind the raids Bedi stated, “Actually the government

is under pressure for collections, hence they are carrying out routine checks of

companies that are availing tax benefits.”

According to sources in the market there are complaints of anomalies in the

company's regional offices as well. Survey operations were also conducted in the

Jammu office last week.

Section 80-I refers to the profits and gains derived from an eligible

industrial undertaking and permits a deduction to the extent of 25 percent of

such profits and gains, i.e. the profits and gains derived from the industrial

undertaking.