I-T dept says CCD's Siddhartha accepted holding blackmoney, disputes his signature on letter
New Delhi/Bengaluru, Jul 30: The Income Tax Department on Tuesday denied charges of harassment during its probe against Caf Coffee Day (CCD) promoter V G Siddhartha as it pointed out that his signature available with it was different from that on a letter being widely published on social media.
It said the businessman had admitted holding stash income after raids were conducted against him and his concerns.
In the unverified letter, Siddhartha, who has gone missing on his way to Mangaluru from Bengaluru in Karnataka, said there was a lot of harassment from the previous DG of the Income Tax Department in the form of attaching "our shares on two separate occasions to block our Mindtree deal and then taking position of our Coffee Day shares, although revised returns have been filed by us (sic)".
"This was very unfair and has led to a serious liquidity crunch," the letter, bearing a purported signature of Siddhartha, said.
Refuting the charges, the department said in a statement issued in Bengaluru that the provisional attachment of shares was made by the department to protect the "interests of revenue", a norm in cases of large tax evasion, and the action was based on "credible evidence" gathered in the search action that was undertaken against the Bengaluru-based group in 2017.
"The department has acted as per provisions of the Income Tax Act," it said.
The authenticity of the note circulating on social media cannot be vouched for as Siddhartha's signature "does not tally" with what is available with the department in the form of annual reports of the company, it said.
The statement said Siddhartha fetched Rs 3,200 crore from the sale of Mindtree shares, but has paid only Rs 46 crore out of the total Rs 300 crore minimum alternate tax (MAT) payable on the deal.
"As against the balance MAT liability of Rs 250 crore and tax liability based on search findings to the tune of about Rs 400 crore, the attachment made by the department is less than 40 per cent of the likely tax liability," it said.
The raids against the group were carried out as a result of a similar action against a prominent Karnataka politician and Siddhartha, in a sworn statement, "admitted" unaccounted income of Rs 362.11 crore and Rs 118.02 crore in his hands and that of Coffee Day Enterprises Ltd respectively, it said.
A Singaporean citizen was searched in this case and he was found with unaccounted cash of Rs 1.2 crore and the person told tax officials that it belonged to Siddhartha, the department claimed.
It alleged that the CCD promoter filed his IT returns but "did not" mention the undisclosed income, as admitted in the sworn statement, in both the cases except an amount of around Rs 35 crore in his individual case.
"Even on this admitted sum, Coffee DAY Global Ltd has not paid the self-assessment tax of Rs 14.5 crore on the returned income. Coffee Day Enterprises Ltd did not offer the admitted income in its part," it said.
It said the department got to know through media reports in January that Siddhartha was planning to sell the equity shares of Mindtree Ltd, held by him and his company, on an immediate basis.
Tax officials found that Siddhartha and Coffee Day Enterprises Ltd together held nearly 21 per cent of shareholding in Mindtree Ltd and that the deal for sale of shares was set to be finalised within that month.
As the tax revenue ramification in this case was worth crores and the assessee had not taken permission from the I-T authorities for selling these shares, they were attached as per the norm, it said.
Mindtree Ltd's 74,90,000 shares were attached and such an action is a normal requirement to protect the interests of revenue in big cases of tax evasion, the department said.
It said Siddhartha then filed a request to release these shares and offered other shares of Coffee Day Enterprises Ltd as security against the expected demand.
The department accepted this request and the attachment of Mindtree shares was revoked on February 13, it said.
However, a specific condition was put by the department that the sale proceeds will be utilised only for repayment of loans availed against the Mindtree Ltd shares by opening escrow account and the remaining balance will be provided for attachment to the department against the tax liability to arise.
"The alternate attachment of 46,01,869 unencumbered shares and 2,04,43,055 encumbered shares of Coffee Day Enterprises Ltd was made on February 13-14," the department said.
The CCD promoter is the son-in-law of former Karnataka chief minister and BJP leader S M Krishna and was last seen near a bridge on Netravati river in Kotepura area in Dakshina Kannada district on Monday night.
Authorities have launched a massive search for him.
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Kerala court sentences man to life imprisonment for doc's murder in hospital
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Kollam (PTI): A teacher convicted in the sensational murder of Dr Vandana Das inside a hospital here was sentenced to life term on Saturday, and the prosecution said it will move an appeal seeking death penalty for the accused. The victim's family also batted for "maximum punishment".
Dr Das was brutally killed inside a taluk hospital in May 2023 by G Sandeep.
Kollam Additional District and Sessions judge P N Vinod sentenced Sandeep to a total of 30 years for various offences under the then Indian Penal Code (IPC) and said that after he serves that period, his life imprisonment for Das' murder will commence.
The court also imposed a fine of Rs 2.35 lakh on the convict.
Though the prosecution had sought death penalty for the accused during the arguments on sentence, the court was of the view that the case does not fall under the rarest-of-rare category to warrant the maximum punishment.
It was also of the view that there was a chance of the convict getting reformed as he told the court that the rest of his life would be one of repentance, the order on sentence said.
"At the same time, I agree with the stand of the prosecution to the effect that the sentence should commensurate with the gravity of the crime and the sentence should not only be reformative, but should also have a deterrent effect."
"In my view, the said objective can be achieved by directing that the term sentences that will be imposed will run consecutively and life sentence that has to be imposed will commence only after the expiration of terms sentences," the judge said.
After the verdict, special public prosecutor (SPP) Prathap G Padickal told reporters outside the court that he will recommend to the prosecution to file an appeal seeking enhancement of the life imprisonment to death penalty.
The victim's father said that the verdict has come as a relief for the family, but that he cannot authoritatively say whether his late daughter has got justice. He indicated his dissatisfaction with the punishment, saying that steps will be taken to seek its enhancement after discussions with the public prosecutor.
Dr Das' mother said that the family can only wish for the maximum punishment and it was up to the court to decide what sentence should be given. She said that the family will go in appeal, but declined to comment on whether her daughter got justice.
She tearfully said that she wants the convict to suffer the same pain that her daughter underwent "as he stabbed her 27 times".
The court on March 17 had convicted Sandeep for various offences under the IPC, including murder, destruction of evidence and wrongful restraint.
It had also held him guilty under the provisions of the Kerala Healthcare Service Persons and Healthcare Service Institutions (Prevention of violence and damage to property) Act 2012.
Sandeep was brought to the taluk hospital by the police for medical treatment during the small hours of May 10, 2023 and he went on a sudden attacking spree using a pair of surgical scissors kept in the room where his leg injury was being dressed.
A school teacher by profession, he had initially attacked the police officers and another person who had accompanied him to the hospital and then turned on the young Dr Das, who could not escape to safety.
She was stabbed several times and later succumbed to her injuries in a private hospital in Thiruvananthapuram where she was rushed following the attack.
Dr Das was a native of the Kaduthuruthy area of Kottayam district and the only child of her parents.
She was a house surgeon at Azeezia Medical College Hospital and was working at the Kottarakkara taluk hospital as part of her training.
Sandeep had called the emergency number 112, claiming that his life was in danger. When local police located him, he was standing close by his home, surrounded by local residents and his relatives, and had a wound on his leg following an alleged quarrel.
He was then taken to the hospital for dressing the wound.
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