Tax settlement commission, a quasi-judicial body to settle tax liabilities, has asked Indiabulls Real Estate (IBREL) to cough up Rs 300 crore on the undisclosed income — detected during a probe by the income tax department initiated in 2016.
The matter had been referred to tax settlement in 2017. The quasi-judicial body issued its order on April 30, which was the deadline for the ruling. I-T rules provide the tax commission 18 months to pass the order. Confirming the development, a senior tax official said the real estate company has been charged interest on the tax liability.
The tax authority is examining the order and will take a call on challenging it.
When contacted, an IBREL spokesperson strongly denied the development.
The application for settlement can be made only during the pendency of the assessment proceedings, whereas an appeal can be filed only after conclusion of the same, against an order of assessment.
For approaching the settlement commission, an applicant is required to disclose income that they have not disclosed before the I-T department, and also pay the applicable tax and interest on it before filing the application.
People in the know say that the tax department unearthed over Rs 800 crore of undisclosed income during the search operation.
On July 13, 2016, the I-T department has carried out a massive search operation on the Indiabulls Group, in Mumbai, Delhi and Chennai, for alleged tax evasion, during which it allegedly seized several incriminating documents.