Tilak Nagar Industries slips 5% over tax evasion reports

MUMBAI: Shares of Tilak Nagar Industries saw selling pressure on reports the company is under the Income-Tax department's scanner for alleged tax evasion.
Doubts are being raised over the mega project status claimed by the company for its Shrirampur distillery.

At 11:45 a.m.; the stock was at Rs 54.85, down 5.10 per cent, on the BSE. It touched a high of Rs 57.50 and a low of Rs 51.35 in trade today.

"The company used fake bills to inflate its capital outlay for claiming the status that makes it eligible for sales tax subsidy of about Rs 250 crore, a report prepared by the I-T department in Pune says on the basis of the investigating team's inputs after the survey carried out in March," TNN report said.

The report, a copy of which has been reviewed by ET, says the company's chairman and managing director Amit Dahanukar admitted to bogus revenue expenses but not bogus capital expenses.

Dahanukar told ET: "We have given our explanation to the Income-Tax department. We have not done anything wrong. Some vested interests are making these allegations."