Hero MotoCorp shares dove 7.08 per cent to Rs 2,208.35 on the BSE on Tuesday after media reports said the Income Tax Department has found that the company made bogus expenses of over Rs 1,000 crore and cash transactions for a farmhouse in Delhi worth over Rs 100 crore.
In a notification to the BSE, the two-wheeler maker said: “The allegations made in the press report are not borne out of any document that have been served on us or our internal documents. Therefore, we categorically deny the speculative press reports.”
Income tax officers conducted search operations on about 40 premises of Hero MotoCorp for a few days beginning March 23. I-T officials had said that the operations were part of a tax evasion investigation against the company.
“The assessment proceedings pertain to the company’s financial transactions for multiple years based on documents/ electronic devices seized during the search operations,” an official had said, adding the company had booked bogus purchases and had unaccounted cash expenditures.
A tax demand on unaccounted financial transactions would be issued to the company after the assessment proceedings are completed, another official had said. (FE)