Income tax

The income tax department is raiding an engineering and construction company for tax evasion in 20 different locations. Read here

The engineering and construction company Power Mech Projects (PMPL) was raided by the Income Tax Department on about twenty of its premises. The sources told the news agency ANI, it is found that Power Mech Projects claimed an artificially inflated deduction under special provisions regarding certain income, by resorting to the suppression of expenses and the excessive allocation of income to the unit eligible for such a deduction. The locations attacked are believed to be spread across Telangana and Uttar Pradesh.

While Department of Income Tax sources said ANI that during the search operations, substantial incriminating evidence, in the form of documents and digital data, was found and seized. According ANI report, the company’s headquarters in Hyderabad, the residential premises of Chairman and Managing Director Sajja Kishore Babu and other senior executives were covered in the search action which was launched on Wednesday morning.

Additionally, the subsidiary of the engineering and construction company Power Mech Infra is also being raided by the tax enforcement agency, while searches are underway at two of their premises in Noida. The engineering and construction company Power Mech Projects was established in 1999. The company provides services in the energy and infrastructure sectors and, to date, is present in more than ten countries. Last month, PMPL announced that it had received a “Letter of Award (LoA)” for five separate work orders worth 521.95 crores.

Meanwhile, in May, Power Mech Projects Ltd reported a 31% increase in consolidated net profit on Saturday at 47.2 crores in the quarter ended March 31, 2022, helped by higher revenues. The company had timed A net profit of 36 crore in the January-March quarter of fiscal 2020-21, Power Mech Projects said in a regulatory filing.

His total income during the said period amounted to 905.4 crore, from 759.9 crores a year ago. The expenses were 841 crores, against 711 crore in the period a year ago. Power Mech Projects Limited, is a leading infrastructure construction company based in Hyderabad with a global presence.

(With ANI entries)

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