WEB DESK
The income tax (I-T) Department is reportedly investigating a financial deal between Jet Airways and Godrej Buildcon (GBPL), a subsidiary of Godrej Properties.
According to a Business Standard report, the Naresh Goyal-led Jet Airways received a ‘monetary consideration’ to the tune of Rs 1,725 crore from the developers as part of a land development deal.
The I-T Department is now evaluating whether both the parties would attract any tax liability on the deal.
This probe concerns a 2.5-acre plot of land that Jet Airways had acquired in 2006 at the Bandra-Kurla Complex for Rs 390 crore. The airline subsequently entered into an agreement with Godrej Properties in 2011 to develop the land and take on Jet’s Rs 360 crore debt responsibility on the property. Godrej will additionally have to pay Rs 135 crore to the airline for expenses incurred.