LETTER ON 4-6-2003 LETTER TO CIT-V MR. M C KATHERIA

P.S.Mody
C/o S.S.Modi
40 BMM SOCIETY
AHMEDABAD 380 006

4-6-2003

TO

THE COMMISSIONER OF INCOME TAX-V
NARAYAN CHAMBERS,ASHRAM ROAD
AHMEDABAD
PHONE 079-26576382,FAX 079-2754623


SIR,

FOR KIND ATTENTION OF SHRI M.C.KATHERIA
YOUR REEF LETTER: hq-v/18/02-03 dated 2-4-2003

This is in reference to the hearing held on 3-6-2003 in regard to stay of demand for assessment year 96-97 pursuant to my letter dated 16-12-2002 attended by the undersigned in your office, where I delivered dated 3-6-2003 to you. For the reasons best known to you, you did not bother to read this letter nor ascribe logical reasoning as to why you preferred to reject my application for stay of demand.

2. On the contrary, you asked the undersigned to pay demand arbitrarily without furnishing detailed evidences as referred in my letters addressed to you and your subordinates.

3. You decided to operate from a stubborn and obstinate mindset-that you were not even ready to give a patient hearing to the subject matter and decided to close the matter within five to ten minutes. Morevoer, you have not even done your honmework to give a detailed reply to the letter addressed to ADCIT on Oct 17,2002 and letter addressed to the Assessing Officer dated 12-2-2003 with a copy of these letters marked to you.

4. In fact, you did not have any right to reject stay of demand and raise demand without giving detailed justification and evidence, especially when it is crystal clear from the contents of the balance sheet of company (claiming to have acquired shares) that the shares along with duly stamped transfer deeds have not been presented within validity period of two months which means that capital gains tax did not arise and had such evidence existed at the time of investigation carried out by Mr, D.N.Kar , he would have brought it to the notice of the assessing officer right then.




5. You were bound to give patient hearing and detailed reasoning with completed documentary evidence in the interest of natural justice. Your approach is nothing short of white collared terrorism and harassment so as to recover taxes without putting all the facts to complete logical conclusions.

6. You are called upon to show cause as to why you do not want to call the respective auditors of the companies, escrow persons and signatory to the share certificates effecting share transfers by recording their statement by collecting complete evidence especially when the assessment order has explicitly stated that the information has not been received from the company referred therein and your inaction in this regard confirms that you are in collusion with the auditors as well as signatory to the share certificates effecting share transfer. Unless, satisfactory explanation is offered by you, it would be construed that you are not a person of personal integrity and you along with your subordinates have accepted consideration for extending favor by shielding these persons. Your detailed reply shall reach within two working days of receipt of this letter along with steps taken by the assessing officer as outlined in my letter addressed to him on 12-2-03.

7. I am marking copy of this letter to the Central Vigilance Commission to initiate inquiry against you for your misconduct by extending favour to the persons referred above.

8. I look forward to your detailed, exhaustive and immediate explanation. Please note that you have to change your attitude and fully understand that you do not harass the citizens unnecessarily.

9. You are called upon to furnish detailed reply so that I can submit application for stay of demand proceedings so that I can submit application for stay of demand to the Chief Commissioner of Income Tax and till then the demand proceedings are kept in abeyance.


Yours sincerely,


P.S.Mody