Nitesh Estates raided for suspected tax evasion

The Commercial Tax Department (Enforcement Wing) officials raided the main office of Nitesh Estates Limited on MG Road on Friday and Saturday for suspected tax evasion in two apartment projects.

The Commercial Tax officials said that the Nitesh had sold 389 flats in two of its projects after collecting tax from the property buyers. However, the company had not remitted the tax to the department. The suspected tax evasion in these two projects had been estimated at Rs 10 crore, officials said.

A senior official said that Nitesh had taken up two projects, Nitesh Forest Hills and Nitesh Flushing Meadows. A total of 284 flats were sold at Nitesh Forest Hills and 179 flats at Nitesh Flushing Meadows.

“The real estate company completed the projects in 2010 and also collected 14.5 per cent tax from its customers. However, in the assesment filed with the department, the company has shown nil return and not remitted any portion of Value Added Tax. The tax evasion thus runs up to Rs 10 crore,” the official said. 

The Commercial Tax officials directed the company to pay the tax due immediately.

However, when the company sought time, the officials seized the document pertaining to the two projects, around 400 files. The issues pertaining to land cost and labour exemption assessment are still being probed, the official said adding that the main office premises had been seized to continue the probe.

Meanwhile, media personnel who went to Nitesh's head office on Saturday to cover the raid were roughed up by the security guards and officials. They objected to taking the pictures of the officials searching for the documents at the office.