The Income Tax Department’s Mumbai investigation wing conducted a surprise survey on Wednesday at the business premises of Marico Limited, which is the parent company of the popular hair oil brand ‘Parachute’.
Confirming the surprise survey, an Income Tax Department spokesperson said the operation is probing charges of tax evasion by Marico.
More than 200 Income Tax officials are part of the surprise survey, which is being conducted across Marico’s offices and facilities in different parts of India, the official said, adding that the Income Tax Department’s Mumbai investigation unit is directing the entire exercise.
A survey conducted under Section 133A of the Income Tax Act is different from a typical raid or search operation. Although its scope is relatively limited, the powers granted are considered significant enough to detect any potential tax evasion.
During a survey, Income Tax officials are authorised to inspect books of accounts and documents, place identification marks, and make extracts or copies.
The law also enables Income Tax officials to impound books or documents, though not beyond ten working days, without the approval of the Chief Commissioner or Director General of the Income Tax Department.
If the person being surveyed declares that books or records are kept outside the business premises, Income Tax officials are also permitted to visit and survey those locations as well, as per Section 133A of the Income Tax Act.
Presently, the Income Tax Department team is scrutinising financial documents as well as transactions undertaken by Marico as part of the tax evasion probe, the official said.
Marico, which is led by its Chairman Harsh Mariwala, is a household name known for fast-moving consumer goods (FMCG) brands such as Parachute, Saffola, and Livon. Marico has a strong presence in both domestic and international markets like West Asia (Middle East) and Africa.
The surprise Income Tax survey has brought Marico into the spotlight as one of India’s leading FMCG players, which comes under the scanner of tax authorities.
No specific details on the scope or findings of the survey have been made public.
Marico’s official spokesperson could not be contacted, and no official statement about the surprise Income Tax survey has been issued so far.