3 Businessmen sentenced to Imprisonment of 1 Year for Tax Evasion

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

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

Jaipal Reddy and Narender Reddy purchased the land from vendors Desaram Krishna and others for Rs.88 lakh in cash. The investigation revealed that Jaipal Reddy concealed his Rs.44 lakh portion of the transaction, resulting in tax evasion.

“Even with such low turnover and income from all his sources, the assessee has managed to purchase agricultural land with a total payment of Rs.44,00,000 in cash during FY 2015-16, which indicates that the assessee has not disclosed his true income to the department,” the judge’s ruling said.

A thorough investigation resulted in the conviction of the accused in a deliberate attempt to avoid tax.