Why Did Income Tax Officials Conduct a Survey at Raymond Offices Across India?
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Synopsis
In a significant move, Income Tax officials have surveyed Raymond's offices across India under Section 133A of the Income Tax Act. This action raises questions about the company's operations and its history with tax regulations, as it navigates financial challenges and past scrutiny from authorities.
Key Takeaways
- Income Tax Department conducted a survey at Raymond offices.
- Survey executed under Section 133A of the Income Tax Act, 1961.
- Raymond is cooperating with ongoing proceedings.
- History of tax scrutiny raises questions about corporate governance.
- Financial performance impacted by recent losses.
New Delhi, Sep 26 (NationPress) On Friday, certain officials from the Income Tax Department executed a survey at various offices and manufacturing facilities of Raymond, a prominent player in the Indian textile sector.
Raymond confirmed that this survey was conducted in accordance with Section 133A of the Income Tax Act, 1961.
“We would like to inform you that on the previous day, officials from the Income Tax Department visited several of our offices across India to carry out a survey action under Section 133A of the Income Tax Act, 1961,” the company stated in a regulatory document.
“The proceedings are ongoing, and the company is fully cooperating with the officials,” the announcement further elaborated.
Raymond Lifestyle and Raymond Realty also shared this information with the stock exchanges.
A survey conducted under Section 133A differs from a search operation. Although its scope is more limited, it empowers authorities to review accounting books and other documents, mark them, take extracts or copies, and even seize items.
However, seized documents cannot be held for more than ten working days without prior approval from the Chief Commissioner or Director General.
Officials also have the authority to survey locations where records are maintained outside business premises.
Raymond has a history of engagement with government entities. In January 2024, the company resolved a customs duty matter initiated by the Directorate of Revenue Intelligence (DRI) pertaining to the import of 142 cars by settling the case for Rs 328 crore.
Previously, in 2011, the Income Tax Department conducted searches at the residences of Gautam Singhania, Chairman and Managing Director of the Raymond Group, in Mumbai and Delhi over allegations of tax evasion.
In a related financial update, during Q4 FY25, Raymond Lifestyle reported a consolidated net loss of Rs 45 crore, a stark contrast to the net profit of Rs 236 crore recorded in the same quarter of FY24.
As per the exchange filing dated May 12, revenue from operations also fell by 11.3 percent year-on-year (YoY) to Rs 1,494 crore in Q4, down from Rs 1,684 crore in Q4 FY24.
Point of View
It is crucial to recognize the importance of transparency and compliance in corporate practices. The Income Tax Department's survey at Raymond serves as a reminder that adherence to tax regulations is essential for maintaining public trust and ensuring a fair marketplace.
NationPress
26/09/2025
Frequently Asked Questions
What is the purpose of the survey conducted by Income Tax officials at Raymond?
The survey aims to inspect financial documents and records to ensure compliance with tax regulations under Section 133A of the Income Tax Act, 1961.
How does a survey under Section 133A differ from a search operation?
A survey is less invasive compared to a search operation; it allows authorities to examine and take copies of documents but does not allow for extensive searches.
What is the significance of Raymond's previous interactions with government authorities?
Raymond has faced scrutiny in the past, including a customs duty case and tax searches, highlighting the importance of corporate governance and compliance.
What impact does the recent survey have on Raymond's financial status?
The survey may affect investor confidence and could have implications for Raymond's ongoing financial recovery, especially following a reported net loss in Q4 FY25.
What are the next steps for Raymond following this survey?
Raymond is expected to cooperate fully with the Income Tax Department and provide necessary documentation as investigations proceed.
