Marico Clarifies: Income Tax Survey Does Not Affect Business Operations
Marico Limited, an Indian Multinational Consumer Goods Company, has said that the survey operations carried out by the Mumbai Investigation wing of the Income Tax Department at its offices have no key impact on the company.
The company is the parent of the hair oil brand ‘Parachute’ and is led by its Chairman Harsh Mariwala. It has brands in different areas, including hair care, skin care, edible oils, health foods, fabric care, etc.
The statement comes after 200 Income Tax officers started a “surprise survey” under section 133A at several offices of Marico in India on Wednesday. A surprise survey is when the tax officials visit the business place without any notice and check the books of account and documents. It also gathers information that may help in identifying undisclosed income or irregularities. However, a surprise survey is not the same as a raid, as during the surprise survey, the Income Tax Department cannot search or seize. It is only done to collect the information about any suspected irregularities.
In some cases, the Income Tax law also allows Income Tax officers to seize books of accounts or documents, but only for up to ten working days and requires approval from the Chief Commissioner or Director General of the Income Tax Department.
If the person being surveyed says that some records are stored outside the business premises, the officers can also visit and inspect those other locations. This is clearly allowed under Section 133A of the Income Tax Act.
Marico’s proceedings are ongoing, and it is fully cooperating with the income tax department.
