Jagan aide tells taxman to back off

Hyderabad: A letter that arrived at the Income Tax Towers two days ago left the officials red faced.

Written by the vice-president of Jagati Publications Private Limited (JPPL), Vijay Sai Reddy, the letter wants the Commissioner of Income Tax (II) Fakir Mohan Mohanty to 'recuse' himself from the ongoing assessments of Jagati Publications Private Limited (JPPL). Surprisingly, the letter is addressed to Mohanty himself!

Sources told Express that a sealed cover was delivered to the income tax officer working under Mohanty on Monday morning. The cover soon landed on Mohanty's table in the IT Towers. The contents of the letter just baffled the IT top brass.

''Recuse yourself from the assessments of Jagati Publications Private Limited (JPPL),'' read the lengthy, neatly drafted letter, reportedly containing signature of Vijay Sai Reddy. The letter went on to state that Mohanty was biased towards Jagati Publications Private Limited (JPPL) and Jagan (Kadapa MP) group companies and that the senior IRS officer was exerting ''undue pressure'' on his subordinates to work against the interests of Jagan group.

While citing reasons as to why Mohanty should recuse himself, Reddy further alleged that Mohanty was ''prejudiced'' against Jagan group.

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Sources in Jagan's camp disclosed that on payment of 25 crore by Jagati Publications Private Limited (JPPL) towards taxes, the then IT Commissioner (Mohanty's predecessor) H Srinivasulu granted what is called Stay of Demand in IT parlance. (In scrutiny assessments, it is sometimes seen that huge demands are created against the assessee by framing high pitched assessments due to difference in opinion on interpretation of law or interpretation of facts or due to the fact that the assessing officer is not satisfied with the explanations offered by the assessee)

However, after Mohanty took over as IT Commissioner (II), he took up a review of the Stay of Demand.Besides the review, the IT officials have also taken up assessments of Jagati Publications Private Limited (JPPL) and with Mohanty's subordinates going tough against Jagati Publications Private Limited (JPPL), the company approached the AP High Court which stayed the proceedings.

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Following this, and with fresh assessments going on, Vijay Sai Reddy is said to have written the letter to Mohanty as he believed that "coercive means'' are likely to be undertaken if the HC stay is vacated. The letter also accuses Mohanty of "going soft'' on Ramoji group during his earlier stint as Commissioner of IT (IV), Hyderabad.

Contacted by Express and asked whether he received any letter from Vijay Sai Reddy, FM Mohanty said: "The letter would have come.'' When pressed further, he said: "Frankly, some letter has come but these are purely official matters. Our people are looking into it.This is not something I can discuss now.''