A big news has come out about the well-known FMCG company Marico Limited, making products like Parachute, Safola and Livon. In the action of the Income Tax Department across the country on Wednesday, the process of survey action was also started at Marico's offices, which saw a stir among the company and investors.
As soon as the news of the survey came to light, there was a decline in the company's shares in the market. By around 12:30 am on Wednesday morning, Marico shares were trading at around Rs 713 per share with a decline of 1.40%. In the midst of this decline, the company's market cap fell by about 13 crores, ie investors lost Rs 13 crore.
This action of the Income Tax Department is not a raid but a "survey", which has been taken under Section 133A of the Income Tax Act. This process is generally done to investigate cases like potential tax evasion or hiding earnings.
During the survey, the officers check the company's accounts, bills, documents and other necessary records. If needed, a copy of the documents or confiscation can also be done, but it cannot be kept more than 10 Working Day until permission is received from above.
So far, Marico Limited has not issued any official statement on this whole incident. According to ET sources, this action has been taken for the purpose of the company's income and tax investigation. But as more information is revealed, the picture will be clear.
It is important to know here that there is a big difference between survey and red. Survey is a limited process, which includes collecting information, watching documents and checking records. At the same time, red is a serious process, in which intensive search and seizure of the house or office can be done.
