The Income Tax Department has raided engineering and construction company Power Mech Projects (PMPL) covering around 20 of its premises.
The group is found to have claimed artificially inflated deduction under special provisions in respect of certain incomes, by resorting to suppression of expenses and over-appropriation of revenue to the unit eligible for such deduction, sources said.
Income Tax Department sources toldthat during the course of the search operations, substantial incriminating evidence, in the form of documents and digital data, has been found and seized.
The raided locations are spread across Telangana and Uttar Pradesh. The company's headquarters at Hyderabad, the residential premises of Chairman and Managing Director Sajja Kishore Babu, and other top management were covered in the search action that was initiated on Wednesday morning.
The engineering and construction company's subsidiary Power Mech Infra is also being raided by the tax enforcement agency. Searches at two of their premises at Noida are underway.
Established in 1999, it provides services in the power and infrastructure sectors. It has a presence in more than ten countries.
Last month, PMPL announced that it had received a 'Letter of Award (LoA)' for five separate work orders worth Rs 521.95 crore.
( With inputs from ANI )
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