Polycab India share price cracked over 22 per cent in morning trade on BSE on Thursday, January 11, on reports that the Income Tax (I-T) Department had conducted search operations at several premises of the company in December.
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Polycab India share price opened 10 per cent lower at ₹4,421.85 on Thursday against the previous close of ₹4,913.15. Subsequently, the stock experienced a further decline of 22.4 per cent, reaching the level of ₹3,812.35. According to CNBC-TV18, nearly 33 lakh shares worth ₹1,293 crore changed hands in multiple block deals on Thursday morning.
Polycab India share price has been volatile of late amid circulating reports of tax evasion allegations against the company. On Tuesday, January 9, media reports suggested Polycab has been accused of tax evasion, with the Income Tax Department identifying ₹200 crore in undisclosed income, following which the stock fell about 9 per cent.
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However, the company in a press release on the same day denied reports of tax evasion.
“The company asserts its commitment to compliance and transparency, having fully cooperated with the Income Tax Department officials during the search proceedings in December 2023. The company has not received any communication from the income-tax department regarding the outcome of the search,” the company said on January 9.
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According to media reports, the Income Tax Department conducted searches at Polycab’s premises recently, uncovering discrepancies in financial records. The reports further claimed that the department intends to issue a notice to the company soon, demanding payment of the alleged evaded taxes and applicable penalties.
The media reports further added that the Income Tax Department had identified transactions worth ₹250-300 crore recorded in the promoter accounts.
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Meanwhile, on Wednesday, January 10, a PIB report, without explicitly naming Polycab, revealed that the Income Tax Department had initiated search and seizure operations on December 22, 2023, about a conglomerate involved in the production of wires, cables, and other electrical items.
“During the search operation, a large number of incriminating evidences in the form of documents and digital data have been found and seized. These evidences reveal the modus operandi of tax evasion adopted by the group in connivance with some of the authorised distributors. Preliminary analysis suggests that the flagship company indulged in unaccounted cash sales, cash payments for unaccounted purchases, non-genuine transport and sub-contracting expenses, etc., for suppression of its taxable income,” the PIB report said.
