IT officials, however, were reluctant to disclose the course of action. The department is believed to be keeping close tabs on the findings of the enforcement directorate, but concrete steps are expected only after the completion of investigations by the enforcement directorate.
However, the fact that funds were parked abroad as fictitious profits and were brought back into the country shows clearly that there had been a concealment of income by the company between 1991-92 and 1996-97.
ITCs trading division was pulled up by the department during assessment year 1993-94 when it was not allowed income tax deductions on its export earnings.
ITC had made bogus claims of bad debts, such as advances paid to farmers, and represented certain capital expenditure as revenue expenditure.
