Hero MotoCorp Claims Rs. 1000 Crore False Expenses, IT Department Reveals: Report

The IT Department (Income Tax Department) recently revealed that Hero MotoCorp has claimed above Rs. 1000 crore false expenses, as per news reported by news agency ANI. Additionally, the report mentioned that Hero MotoCorp has also made more than Rs. 100 crore cash transactions for a farmhouse in Chhattarpur, Delhi.

The Indian IT Department, from March 23 to March 26, has made a search and seizure operation on Hero Motocorp, along with the company's Chairman and Managing Director (MD) Pawan Munjal at multiple locations in Delhi NCR. Through this operation, the IT Department had covered above 40 premises spread over different locations in the Delhi NCR. ANI reported that a large number of incriminating evidence in the form of hard copy documents and digital data were seized by the operations, revealing the company made false purchases, had huge unaccounted cash expenditures, and obtained accommodation entries. These false claims altogether showed an expense of above Rs. 1000 crore.

Allegedly, Pawan Munjal purchased the farmhouse in Chhattarpur, where its market was manipulated for the purpose of saving tax, and black money was used to pay cash, which is a violation of section 269 SS of the IT Act. According to the mentioned section of the Income Tax Act, while transacting Immovable Property, a 100% penalty is levied if the seller has accepted an amount of Rs. 20,000 or above in cash from the buyer.