Critical examination of the balance sheets of Jet Airways for the last two decades gave us shocking revelations of how the huge of sums of money is being laundered under the garb of goodwill loss.
As per the balance sheet of Jet Airways Ltd. (copy with Kalchakra), the difference between the net results and operating results is primarily attributable to non-cash impairment of goodwill of Rs. 1,172 cr. In the year ending 31.3.15. “Goodwill is a long-term asset categorized as intangible, just like brands, patents, trademarks and customer loyalty. It arises when a company acquires another company. Its value-the money paid to buy the business minus the fair market value of its tangible assets-is lowered in the acquirer’s books if the value of the acquired company falls.
For instance, Tata Steel said it would write off goodwill and tangible assets worth $1.6 billion during financial year 2012-13 for the loss of value of Tata Steel Europe, formerly Corus, plus other assets in Thailand and South Africa.”
Interestingly in the case of Jet Airways, the story is entirely different because the company in the past twenty years is projecting loss, then what is the basis of earning the goodwill? If the goodwill was earned by way of business which operated under the Indian law, over the Indian land, then once it is monetized, it is liable for tax at the end of the company/entity/individual. This has not been done by Naresh Goyal. Hence, it is important for the taxation authorities to investigate Jet Airways for loss of goodwill, in their two consecutive balance sheets and the mechanism used to monetize the goodwill.
