The income-tax department has slapped showcause and demand notices to the tune of Rs 122 crore on Jagathi Publications, owned by former Congress member of Parliament Y S Jaganmohan Reddy, 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. "The matter is with the assessment wing and they are assessing the case," a source said.
Jagathi Publications is into various media activities such as publishing a Telugu daily Sakshi, and running a 24-hour television news channel by the same name. Jagan Reddy reportedly paid Rs 84 crore as advance tax in September 2010, anticipating an income of Rs 500 crore.
Jaganmohan Reddy forms new party
Thousands turn up to show support for Jagan
Jagan cocks a snook at Sonia, starts yatra
Jagan Reddy: The man who defied Sonia
How the Congress will survive the Jagan crisis