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.