Letter dated 3-3-2003 addressed to Director General U P Singh and Chief Commissioner of Income Tax

By hand delivery
From:
Pankaj S Mody
c/o Shri S S Modi
janmangal Apt
40 BMM Society
Ahmedabad 380 006

Dated 3-3-2003

Addressed to
1) Shri R.N. Srivastav, The Chief Commisioner of Income Tax
2) Shri U P Singh, Director General of Income Tax Investigation
Aaykar Bhavan, Ashram Road
Ahmedabad

Respected Sir,
1) My original ref letter: June 18,1999
2) DGIT ref letter:- DG/AHD/inv/29/99-2000 dated September
19,2000
==============================================

1. This is in reference to your warm and receptive gesture of -on the spot suggestion fro welcoming the undersigned to discuss the matter in your office with both of you simultaneously , when I voiced grievance during OPEN FORUM MEETING in Gujarat Chamber of Commerce premises on 18-2-03. To refresh your memory, I narrated functioning of the department by quoting example of “anybody, nobody, somebody, everybody” from my letter dated 2-7-2001 addressed to DDIT Shri R. Diwedi and copy marked to Director of Investigation.

2. I trust both of you would sort out administrative issue of coordination in consultation with each other in view of harassment process initiated and brought to notice of predecessor DG, Mr. Wakharkar vide my letters dated June 4 2001 and subsequent harassment done to my family members on the basis of assessment orders passed on the basis of presumption basis especially when undersigned took the initiative of being INFORMANT by furnishing detailed particulars during statement recorded on 10-5-2002 by Shri R. Diwedi and the undersigned thanked by DG vide his letter dated September 19,2000.

3. Copies of entire correspondence is already available with the Investigation department and I would appreciate very much if you call the file and refer the background material by preferably discussing matter specifically with Mr. R. R. Diwedi who has recorded my statement on 10-5-2000 and therefore, is conversant and familiar with the subject. It is also necessary to review my letter 2-7-2001 addressed to Mr. R. Diwedi and copy marked vide my letter dated 47-2001 to Mr. Vijay Ranjan, Director of Income Tax Investigation . I hope you personally read the matter so that you can personally review the situation by collecting all the facts and recording of statements and taking action against the auditors,tax consultants, etc.

4. I have met both the predecessors Mr. Wakharkar as well as Mr. Roongta. Mr. Roongta inspite of my letter addressed to CVC and copy marked to him has turned a blind eye and shown total indifference to record the statements of influential persons. This has to be seen in light of narration made in my letters dated 1) Oct 3,2000 2) Oct 23,2000 3) June 4, 2001 4) July 2,2001 5)June 10,2002 and 6) June 25,2002. You can judge for yourself whether he can be considered compassionate human being at all. The contents of my letter dated January 23,2002 and June 10th 2002 would have made any person to wake up from deep slumber to safeguard personal integrity by taking all the necessary action directly or through commissionerate wing immediately. Howevever, instead of doing that , he has intiated the steps of indirect harassment through the officials in the assessment wing. As he had received my letter dated January 23,2002 , it was his duty and responsibility to furnish complete and detailed facts, recording of statement and information to the assessment wing. On account of deliberate incomplete information and inquiries submitted to the assessing officers resulted in harassment to me and the matter has leaked from the department somehow whereby the party got opportunity to get sufficient time to start amalgamation process in the high court from October 2000 onwards (after letter dated Sept 19,2000 from DG) and thereby defeat the very purpose of valuable information given by the undersigned and resulting in loss of revenue. The department deliberately evaded to take swift action by passing on the information to the assessing officers and ignored the observations made in my letter dated 23-10-2000. I hope you take measures of rectification.

5. Sir, when both of you together reflect on the performance, the staff working under you has not accomplished anything for which predecessors can be proud of but on the contrary exposes inefficiencies as well as ineffectiveness of the institution while displaying indifference, harassmenrt and damage to the informant –that is undersigned. I have pointed deficiencies in detail in my letter addressed to CVC and copy marked to Mr. Roongta on 3-6-2002. Moreover, it is apparent from under mentioned observations:-

• You would come to conclusion that statement of the auditor still remains to be recorded even after my letter dated June 18, 1999 regarding valuation of shares as well as ownership of the company till date.

• In view of contents of letter addressed by the auditor to the Institute regarding phone call communication from Mr. D.N.Kar as referred in my letter addressed on June 18th 1999.

• Complete absence of collection of all necessary evidence and recording of statement till date in relation to the company claiming to acquire immoveable property as well as ownership of shares and control of the company y and tax evasion for illegal transfer of property.

• Spirit of commitment made in letter dated Sept 19,2000 Director General Shri Betgiri still not implemented except harassment to the informant –that is my self.

• The assessing officer has not been able to collect required information before conducting reassessment as reflected in the assessment orders even when sufficient time was available with him.

• There is intentional dodging of the issue of collecting of evidences and recording of the statements of the auditors,tax consultants,after recording of my statement on 10-5-2000 and there by showing favour to these persons and permitting them to go scot free.

6. Some of practical difficulties or excuse, I gathered from various assessing officers are:-

• He does not have jurisdictional authority to verify the books of so called subsidiary ownership of companies regarding ownership of so called subsidiary companies.

• Does not have authority to reopen the cases once assessed.

• Not empowered to verify all the necessary papers whether the persons are permitted to file audited balance sheet , filing of return of income statement and not empowered to balance sheet in view of annexures furnished vide my letter to DDIT Shri R Diwedi on 11-5-2000.

• Not empowered to question into amalgamation and ownership related issues even if primaefacie illegal and tolerate such illegal acts done after the letter dated Sept 19,2000 by the DG –Shri Betgiri.

• Do not want to take initiative of coordinate activities with other assessing officers to find out tax evasion in totality as they are burdened with urgent matters.

7. (i) On the basis of figures and notes of audited balance sheet of 97/98 furnished to Mr. Ajaychandra , DDIT Unit 1(3) , vide my letter dated 30-12-02 , neither Mr. R. Diwedi can deny that he has not collected these figures nor Mr. Ajaychandra can refute the figures and notes presented to him anymore.

(ii)I have apprehension that there is a primaefacie correlation on the incident of fire taking place on 4th floor of insurance Building (around April 29,2002) and on 10th December 2002 on 6th Floor of Insurance Building (where Range 1 documents are filed and located) and contents of my letter dated April 17 2002 and therefore, there is possibility of this mishap happened on account of company being directed by the High Court to file the details latest by April 26,2002 so that real documentary evidence do not come to lime light . The company did not furnish the particulars inspite of commitment made to the Court commissioner on 8th January in city civil suit 5827/2001. One can similarly correlate with the front page article in Indian Express on 7th December 2002 titled “ Great Bank Robbery-7” with particulars submitted to R. Diwedi vide item (p) and (q) of letter dated 11-5-2000 so as to draw necessary inferences on fire incident immediately thereafter on 10th December 2002.

(iii) Under the present circumstances, I hope that both of you take transparent approach by taking action from start to finish to collect all the evidences , record the statement of all concerned auditors as well as persons whose name appeared in \Indian Express and the person who appeared as counsel in CRA 25 and CRA26 to find out who is behind the fire incident and thereby department can insulate from these persons. It becomes absolutely vital for you to furnish the details of investigation to the undersigned forthwith so that the department officials do not get into quick sand. In case the figures and notes are different in the audited b/sheet defer from mine, then correct and suitable inference of suspects involved in fire incident can be drawn. I hope all the necessary steps are taken so that the horse does not escape from the stable failing which both of you would be primarily responsible to let the persons escape. For my personal safety, the contents of the present letter are delivered elsewhere , while being given some lead time for you to take prompt action.

8. INSTANT FOLLOW UP ACTION REQURIED:-

It is my humble appeal to both of you simultaneously to take centralized action as referred in my letter to Director General on Oct 3,2000 with joint coordination of investigation wing and assessment wing within a week of receipt of this letter so as to conduct sharp and thorough investigation (drawing information from Mr. R. Diwedi well versed with the case on account of familiarty of the case as he recorded my statement on 10-5-2000) to collect missing evidences and record the statement of concerned persons in form of affidavit in light of all previous correspondence. Broad hints have been given as under:-

(i) Collect missing evidences and record the statements of concerned persons in form of affidavit in light of all my previous correspondence as well as letters addressed to DDIT Unit 1(3) on 30-12-2002 to Shri Ajaychandra.

(ii) Collect evidences and recording of statement as referred in letters annexed in my letter dated 29-1-2003 to DDIT Unit 1(3) , Shri Ajaychandra. Where, I have enclosed copy of letters
• Addressed to Range 8 on 10-1-2003.
• Addressed to Range 1 on 29-10-2001 , 24-1-2002.
• Addressed to CIT-5 on 19-12-2002.
• Addressed to ACIT range 11 dated 17-10-2002.

(iii) collect evidences and recording of statement etc in light of letter addressed to the assessing
officer dated 12-2-2003 and copy furnished to Shri Ajaychandra.

(iv) undersigned is permitted to cross examine the statements of concerned statements in presence of my advocate after they furnish all the necessary evidences and recording of statement.

(v) the persons are directed to cancel the order for amalgamation in view of situation highlighted

to DDIT on 10-5-2000 and on 30-12-2002.

(vi) strictures are passed against the auditors by the department in case they do not extend full and
transparent cooperation to the department.

9. I humbly request you to look into the matter in depth with an open mind and initiate time bound actions and I am being given fair and natural justice.


Thanking you.


Yours sincerely,


Pankaj S Mody