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Siddartha’s startling e-mail; IT department doubts its authenticity

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Bengaluru: The income tax department which is at a tight spot over the allegations made by Cafe Coffee Day founder V G Siddartha, has clarified on many issues.

Siddartha who went missing on the evening of July 29 in Mangaluru is learnt to have sent e-mail to his board of directors on July 27, a copy of which is already in public domain.

According to a press note released from the office of principal chief commissioner of Income Tax ( Karnataka and Goa), ‘the authenticity of the note is not known and the signature does not tally with VGS’s signature as available in his annual reports.

The investigation in the case of V G Siddartha and Cafe Coffee Day arose from the search in the case of a prominent political leader of Karnataka. It is based on the unearthing of a credible evidence of financial transactions done by CCD in a concealed manner.

A person holding the citizenship of Singapore  was also covered in the search action. He was found with unaccounted cash of Rs 1.2 crore and admitted that the cash belong to Siddartha’. In the search action after considering the evidences gathered by the department Siddartha admitted the unaccounted income of Rs 362.11 crore and Rs 118.02 crore in the hands of Siddartha and CCD respectively in the sworn statement.

With regard to the attachment of his shares, it is stated by IT that ‘In order to protect the interests if revenue, the provisional attachment of 74,90,000 shares of Mindtree Limited owned by Siddartha M/s Coffee Day Enterprises Limited under section 281 b of the IT Act ( though they together held 2,29,31,518 shares), this action is a normal requirement to protect the interests of revenue.

Subsequently Siddartha filed a request letter to release the shares of Mindtree and offered other security of shares of Coffee Day. It was accepted and the attachment of shares was revoked on February 13, with the condition that the sale proceedings will be used only for repayment of loans availed against Mindtree. Siddartha had transferred the shares to M/s L & T Infotech Ltd on April 28 and received around Rs 3,200 crore. He repaid loans of Rs 3000 crore and paid expenses of transfer of Rs 154 crore and balance Rs 46 crore was paid towards first instalment of advance tax of MAT liability of around Rs 300 crore in the case of shares of Coffee Day.

The provisional attachment was made to protect the interests of revenue out of the income admitted by the assesse based in credible evidence gathered in search action. The IT department has acted as per the provisions of the Act.

– Team Mysoorunews

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