Three sentenced to 1-year imprisonment for tax evasion

A Special Court for Economic Offences in Hyderabad, on Thursday, sentenced three businessmen to undergo one year of imprisonment for tax evasion under the Income Tax Act. The court also imposed a fine of ₹50,000 each on the accused.

The accused were identified as Kolan Jaipal Reddy, a real estate bussinessman, Gummi Narender Reddy and Desaram Krishna. The case pertains to the purchase of agricultural land measuring four acres in Pedda Amberpet village, Hayathnagar, in August 2015.

Jaipal Reddy along with Narender Reddy acquired the land from vendors Desaram Krishna and others for ₹88 lakh in cash. However, during the investigation, it was found that Jaipal Reddy concealed his share of the transaction amounting to ₹44 lakh, thereby evading tax liabilities.

“Even with such low turnover and income from all his sources, the assessee has managed to purchase agricultural land for a total consideration of ₹44,00,000 in cash during the FY 2015-16, which indicates that the assessee has not disclosed his true income to the department,” the court order read.

A detailed probe led to the conviction of the accused involved in wilful attempt to evade tax.