Income tax department conducts survey operation at Jet Airways

Income tax department conducts survey operation at Jet Airways
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Mumbai, Sep 19: The Income Tax department team is conducting survey operation at Naresh Goyal-controlled Jet Airways’ four business premises in New Delhi and Mumbai, said two persons in the know.
According to I-T sources, the tax department is probing the airline for falsification of book of accounts, siphoning of funds and issue of suspicious bogus expenses booked to group entities.
The survey operation, being conducted by 50 tax officials, is taking place under Section 133A of the IT Act at the airline’s Andheri and Nariman Point offices in Mumbai to collect evidence related to financial irregularities. The survey would continue for two days, said person cited above.
Meanwhile, the tax department is also examining the airline’s deal with Godrej Buildcon where Jet is said to have received Rs 17.25 billion as a monetary consideration.
Jet Airways has been in the spotlight since August 9, after it had deferred its quarterly results amid differences with its auditors, leading to queries by stock exchanges and the market regulator. The auditor did not modify its opinion and reiterated that the airline’s future was dependent on raising capital and generating sustainable cash flows.
Jet Airways had said last month that it would seek capital infusion and sell the stake in its loyalty programme, after reporting a net loss of Rs 13.26 billion in the April-June quarter of 2018-19.
Jet Airways could not be reached immediately for comments.