The Central Circle of the IT department, Hyderabad, has issued a show cause notice to give details of the amount of Rs 118 crore to the TDP Chief Nara Chandrababu Naidu.
Babu may react on this in a press meet to be addressed today by evening. The IT department wants to know that the said amount is undisclosed income by the former CM and that he must explain it.
After rejecting Babu’s preliminary objections that the tax proceedings against him could not have been initiated by the Central Circle before the jurisdictional assessing officer undertook the exercise of reassessment of his income for the impugned financial years.
“Once the case is notified to this Central Circle, immediately to commence the proceedings, notice under section 153C was validly issued and the proceedings are in progress,” stated the show-cause notice.
The department has recorded statements and seized materials to prime facie show that unaccounted income generated through bogus sub-contracts was given back to the former CM.
Section 153C of the I-T Act allows the revenue department to proceed against a party other than the person who has been searched if certain incriminating materials are found against that party.
