Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 10th April, 2019

PRESS RELEASE

CBDT conducts search in the case of Sri Gurappa Naidu

The Income Tax Department conducted search on 9th April, 2019 in Vijaywada at the premises of Sri Gurappa Naidu, a cost accountant. An information had been received on toll-free-number that cash was kept at the residence of Shri Gurappa Naidu which was to be used in General Election. It was only at the time of recording his statement late in the night that he revealed that he was giving services to Shri Galla Jayadaev, MP, TDP also in his capacity as a cost accountant. During the course of search, cash of ₹ 45.4 Lakhs was seized being unexplained.

The person searched, Sri Gurappa Naidu is a retired person who is practicing free lance cost accountancy. No other premise except the residence of Sri Naidu was searched. No premise of the MP candidate Sri Galla Jayadaev was searched.

(Y. D. Sharma)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT.

Search and seizure in tax probe uncovers unexplained cash at a professional's residence during an election-related inquiry. A tax authority executed a search at the residence of a freelance cost accountant following an intelligence tip that cash was being held for election use; the accountant later disclosed providing services to an identified Member of Parliament and a substantial sum of unexplained cash was seized. The enforcement action was limited to the accountant's residence and did not extend to premises of the political figure.