Mumbai, Dec 23: The investigation wing of the Income-Tax department here on Tuesday issued show-cause notices to around 25 companies which have entered into lease-back transactions with REPL Engineering Ltd.

"The notices have been served seeking details of the 100 per cent depreciation claims made for non-existing assets", sources in the investigation wing said. The notices had been directly faxed to the head-offices of these finance companies in order to solicit an early response.

According to sources, REPL Engineering, which was raided last week, has agreed to withdraw its Rs 18.87 crore claims made on bogus lease rentals for the assessment years for which returns have already been filed. "We expect all the finance companies to come under VDIS", sources added.

The 25 companies which allegedly claimed depreciation on non existent windmills and plant and machinery leased out to REPL include: HDFC Bank, Tata Finance, IDBI, 20th Century Finance, Shapoorji Pallonji Finance, Bank of Madura, Karnataka Bank Ltd, LKP Finance, IIT Corporate Services, TVS Laxmi Credit Capital, Binani Metals Ltd, Maharashtra Apex Corporation Ltd, ICDS, Harita Finance, Manipal Finance, Federal Bank Ltd, Gem Stone Investment, TDICI, Chennai Inorganic, Indian Syntants, Shalibhadra Finance Ltd, J R Enterprises J T Lalvani, Hindustan Dorr Oliver and Mardia Finance. According to revenue sources, Manipal Finance has already surrendered an amount of Rs 1.5 crore under VDIS while Shalibhadra Finance has agreed in principle to surrender Rs 1.3 crore soon.

IDBI and 20th Century Finance, which were reported to have financed plant and machinery worth Rs 3.5 crore and Rs 50 lakhs respectively have also come under the department's net. They had allegedly bought the machinery from one Universal Moulders and Fabricators, owned by Sudhir Narayan Pethe, associate of Homi Patel of REPL Engineering.

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