Politics of Income Tax - Jagan Reddy Gets 122 Crores IT Notice
JAGAN Mohan Reddy, s/o of YS Rajasekhara Reddy, former Chief Minister of Andhra Pradesh is said to be worth a Lakh of Crores. This was okay when he and his father were in the Congress party. Now that Jagan Reddy has the audacity to challenge the authority of the all powerful MADAME, he has to explain this money. It seems the Income Tax Department has issued a demand notice to Jagan's Jagathi Publications Pvt Ltd ( JPPL ) which runs the popular newspaper SAKSHI and the TV Channel also known as SAKSHI .
JPPL issued shares at a premium of Rs. 350 per share. The investors included Matrix Group of Companies (Rs 70 crore ), Aurobindo Group (Rs 10 crore ) and Hetero Group of Companies (Rs 4.5 crore ). The IT Department sought to know why these companies bought shares in JPPL by paying a premium of Rs 350 per share whose face value was Rs 10 per share. All of them are said to have benefited by way of allotment of projects or land by the Andhra Pradesh government between 2007 and 2009 when Y S Rajasekhara Reddy was the chief minister.
The IT Department is said to have treated the premium amount of Rs 350 per share received by JPPL from ‘other shareholders' as benefits and, thus, taxable. The department calculated that JPPL sold 79,30,539 shares of Rs 10 at a premium of Rs 350 amounting to Rs 277,56,88,650 to the ‘other shareholders'. Unexplained investments and cash credits of Rs 15 crore were also treated as benefits to JPPL .