I-T Dept slaps showcause notices on Jaganmohan Reddy

The Income Tax Department has slapped showcause and demand notices to the tune of Rs 122 crore on Y S Jaganmohan Reddy, a former Congress MP that owns Jagathi Publications (JPPL), for mismatching amounts reported in company records.

The notice assumes significance as Jagan Reddy announced a new party -- the YSR Congress Party -- just two days ago.

When contacted, sources close to the Income tax Department confirmed the issuance of a notice to Jagati and said the matter is with the assessment department.

"The matter is with the Assessment wing and they are assessing the case," sources told PTI.

Jagathi Publications is into various media activities like publishing a Telugu Daily Sakshi and running a 24-hour news channel TV, also Sakshi.

Jagan Reddy reportedly paid Rs 84 crore as advance tax in September last year, anticipating an income of Rs 500 crore.