Marico Under Scanner! Income Tax Department Conducts Nationwide Survey Across FMCG Giant's Offices: Report

The Income Tax Department is currently conducting a survey at Marico, reported Economic Times citing sources. This operation is spearheaded by the department's Mumbai investigation unit and involves more than 200 officers. The survey is being carried out across various Marico offices and facilities nationwide. Specific details regarding the investigation are still pending.

Income Tax Survey Details

The survey operation spans multiple locations, with a significant number of officers involved in the process. The focus of this exercise is to gather information from Marico's offices situated in different regions across India. The comprehensive nature of this survey indicates its importance to the department, reported ET. GoodReturns couldn't independently confirm the development. An official statement by Marico or any government official is awaited.

While the exact reasons for the survey have not been disclosed, such operations typically aim to ensure compliance with tax regulations and verify financial records. It is not uncommon for large-scale companies like Marico to undergo such scrutiny from time to time.

A survey by the Income Tax Department is distinct from a search operation under Section 133A of the Income Tax Act. While its scope is limited, it has sufficient authority to uncover potential tax evasion on income. The Bombay Chartered Accountants Society (BCAS) notes that only minimal preconditions must be met before this power is exercised by the Income Tax Authority.

Income Tax Survey Procedures

During such surveys, officers have the authority to examine books of account and other documents. They can place identification marks on these materials and make extracts or copies as needed. Officers may also impound books or documents; however, they cannot retain them for more than ten working days without approval from the Chief Commissioner or Director General.

If an individual claims that books or other items are stored outside their business premises, officers have the right to visit and conduct a survey at that location as well. This ensures that all relevant information is thoroughly examined during the process.

This survey action is part of a broader effort by authorities to ensure compliance with tax regulations across various sectors in India. It highlights the importance of transparency and adherence to legal requirements in business operations.

As more information becomes available about this specific case involving Marico Ltd, it will provide insights into how such surveys are conducted and their implications for companies operating within India's regulatory framework.