Shree Cement's Share Price Slides as Government Orders Inspection Amidst Alleged Tax Evasion Reports

20 Jul 2023 , 11:24 AM

Shree Cement’s share price declined by over 2 % in morning trade on Thursday. The government ordered an inspection of the company following reports of alleged tax evasion.

Media reports emerged on July 11 about the government issuing an inspection order against Shree Cement. However, on the same day, the company denies receiving such orders in a regulatory filing.

On July 19, Shree Cement filed a BSE notification confirming the receipt of a letter from the Ministry of Corporate Affairs (MCA) about the inspection order.

As per sources, The inspection order was issued after noting concerns regarding related party transactions, corporate governance matters, and improper income tax filings. Prior to this, the Income Tax (I-T) department conducted a survey action at five locations of Shree Cement in Rajasthan to investigate the actual income earned by the taxpayer for a specific financial year.

During the survey, the I-T department verifies deductions claimed by Shree Cement under section 80IA and finds the claimed deductions to be false. Shree Cement denies tax evasion allegations through news channels, stating that they refute all reports related to tax evasion. The company confirms that the I-T survey is ongoing and extends full cooperation to the officials. 

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