17-10-2003 LETTER TO ASSESSING OFFICER WORKING UNDER CIT-V MR. M.C.KATHERIA
Pankaj S. Mody
C/o Shri S.S, Modi
40 BMM Society
Paldi, Ahmedabad 380 006
C/o Shri S.S, Modi
40 BMM Society
Paldi, Ahmedabad 380 006
October 17, 2003
The Assessing Officer, 11(2)
Narayan Chambers,
Ashram Road, Ahmedabad
Sir,
Your ref letter: letter dated 23/9/2003 for recovery of demand
1. I hope you go through the contents of my letter very carefully as it appears that you
have not gone through background material of this case and in the interest of
natural justice , I humbly request you to put your self in my shoes and refrain from
subjecting me to harassment and psychological torture. I am also enclosing article
which appeared in newspaper Sandesh (Annex 1) which states that every issue need
to be followed for logical conclusion. Many issues are to be cleared by you
. Besides, I am the one who has furnished information of tax evasion and I have been
thanked by DG vide his letter dated Seot 19,2000 and therefore, I
have reason to expect fair treatment and not subjected to any harassment especially
when the assessment orders are passed on assumptions and the facts have been
distorted.
2. In July 2002, the assessing officer took intiative on his own to rectify some of the
the mistakes which were apparent. I am sure such initiative can be taken by you in
view of natural justice.
3. Kindly furnish copy of finding of Shri R. Diwedi of the investigation department to
the undersigned the steps taken by you for collecting taxes from the companies as
referred in the letter addressed to me by the DG in September 2000. Till the issue is
resolved , to safeguard the interest of revenue , you have to attach the properties of
the companies involved.
4. Kindly note that I have made application for stay of demand is pending with the
concerned Chief Commissioner of Income Tax-III(Annex 2)is enclosed for your
ready reference. Till then you refrain from any further action.
5. I have already brought to the notice of The CIT-Appeals as regards to my letter dated
12-2-03 addressed to the predecessor aseessing officer.(annex 3) You shall furnish
findings in this regard.
6. Kindly refer to the assessment orders for 96-97, 97-98 and essential paragraphs are
being reproduced from the assessment yr 1996-97 as under:-
“ As per the details available, shares of FPPL were transferred on 1-3-1996 i.e. F.Y.
1995-96 and A.Y. 1996-97, whereas shares of RIPL were transferred on 3-4-1996
F.Y.1996-97 and A.Y. 1997-98. Now shares in a company is moveable property and transfer of moveable property is to be considered complete, as soon as moveable property is delivered along with completed transfer deed. Details were called
from Dhanyushya as all the details are in its possession in respect of transfer of
shares. Details have not been received from DFPL and hence it is not possible
to give finding in respect of exact date of transfer of shares along with
completed share transfer deed. It is a reasonable presumption that the shares must have been delivered , duly completed transfer forms, some days before the actual date of transfer recorded on the share certificate. As the transfer was registered on 3-4-1996, reasonable presumption or say possibly the shares must have been delivered a few days earlier i.e in the March 1996 i.e during the F..Y. 1995-96 and capital gains on it of transfer of shares, considering the circumstances, during the month of March 1996 and assess accordingly.”
In your words you explain in writing what the above narration states and what
requires to be done from your end.
7. In light of the above referred comments in the assessment order, I have reason to
present my primae facie views that first needs to be rectified and cleared by you:-
(a) For the same issue the demand is raised twice. Once in assessment year
96-97 and repeated again in assessment year 97-98 on protective basis.
In the interest of justice , it is necessary to ascertain the facts first, and
clarify first as to the year for which the alleged demand is applicable
by conducting necessary inquiries.with Dhanyushya , Jalundhwala, and
all concerned auditors and the escrow persons by obtaining joint
statement and furnishing copy of their reply to me. You are a mature
person and also having necessary authority to find information as the
narration has already stated that the assessment order is passed on the
basis of assumptions and details have not been obtained from
Dhanyuhsya . In case you fail to furnish all necessary information in
this regard, such raising of demand twice becomes illegal in the eyes of
law. Therefore , as concerned assessing officer, it is your legal and moral
duty and responsibility to clarify as to for what year the demand is
applicable according to you by conducting detailed inquiries.
(b) From the assessment orders it is not clear that you have ascertained that Dhanyushya has received original share certificates and transfer deeds from the escrow persons. Therefore, in the interest of justice, it is necessary to first physically locate possession of original share
certificates and original transfer deeds by obtaining the same from
Dhanyuhysa and Jalundhwala and seize the same and offer the same for
my inspection. Before justifying any demand from me, I have reason to
feel that they do not have such share certificates and transfer deeds as
they have not furnished such information in the suit filed by me.
(c) It has been on record that that Mr. Kashiparkeh is the auditor of
Rupmanglam and Flovin in March 96 , April 1996 and he has filed the return for my personal assessment year 96-97. You can call this chartered accountant who files various returns in the department. There is no reason why you should not conduct inquiries by asking him to produced detailed documentary evidence to ascertain truth and on ground of natural justice (annex 4).
(d) In the interest of natural justice ,you are empowered to take initiative for obtaining detailed information from the auditors of Dhanyushya as regards to the particulars of audited balance sheet reflecting ownership of shares in 1996 proving that the shares along with completed transfer deeds have been presented within validity period of two months to the respective companies for effecting transfer of shares. In absence of such comments, you cannot raise any tax demand.
(e) In light of various MOUs where the name of escrow persons have been
referred who were in possession of shares, transfer deeds, etc, you can take initiative of issuing notice to Dhanyuhysa and Jalundhwala as regards to they procuring written affidavit from the escrow persons as when the share certificates and transfer deeds have been delivered by them.
(f) How the office of assessing officer has assumed share valuation of Rs
2,40,000/share for face value of equity share amounting to Rs 100/share
especially when there is no valuation report in this regard. What prevents
you to obtain such valuation report from the concerned auditor showing
valuation of shares in 1996 and in 1998( 1998 in case of my brothers
family) . On the basis of such valuation of shares of 15000 shares with
voting rights , the value of the property would exceed Rs 300 crores
and would require follow up action by attaching and acquiring the
company properties.
(g) Please specify the steps by the office of the assessing officer, to obtain
replies obtained from the auditors, escrows and directors of
Dhanyuhshya as referred in the assessment orders of my other family
members.
8. Please note that the factual position has been distorted and twisted by the predecessor assessing officer as regards to the findings of the investigation department. In case, Dhanyuhsya had received physical delivery of shares ,
Mr. D. N.Kar of Investigation department would have drawn the attention of the
Assessing officer around May 98 as he had already made inquiries on the advance received from Dhanyuhsya and even Mr. Diwedi who took over in May 99 also did not raise such issue and communicate the same to the assessing officer then . This shows distortion and twisting of facts. It was I who had drawn the attention of the investigation department and in particular Mr. R. Diwedi and
Even at the time of recording of statement , he did not furnish any documentary evidence of shares and transfer deeds, et. which reflected that he had these details. Even the balances sheet of Dhanyushya for accounting year 96-97 did not reflect ownership of shares.
9. You are aware that a sum of Rs 14.40 lakhs (personal & huf) approximately only was received as advance from Dhanyuhsya which also included advance received for purchase of Core Biotech shares of the group company and therefore, there is no justification in clubbing any advance received in preceding financial year for the purpose of alleged capital gains tax without taking into consideration the facts in totality. In light of MOU, Dhanyuhsya and Jalundhwala has not obtained any written confirmation from the escrow persons have been physically delivered by the escrow persons to them. Besides, how come under common mou of all family members of mody family, the shares would be delivered by the escrows in 1996 and in 1998 ?. I am furnishing primae facie evidence of Mr. Jalundhwala handwriting which confirms that the transfer deeds had not been delivered to the escrow persons(annex 8)
10. I am drawing attention of the letter dated 16-12-2000 file no HQ III/101-M-
26/FORM NO 34/AR 8/2000-2001 dated 26-12-2000. P.C.Verma .
Commissioner of Income Tax, GUJARAT-III, Ahmedabad . P. C. Verma had
given reply that “ I have perused your complaint. In this regard, the Assessing
officers have been given appropriate instructions.” I am enclosing one of the
letters in this regard for your reference. It is necessary that you the subject matter
in total depth and rectify the wrong and great injustice done to me in issuing the
ITCC to my wife and my son in haste by verifying the facts.(Refer annex 6,7,9).
It is a fact that the ITCC has been issued by preceding assessing officer Mr.
Gangadharan and ACIT Mr. Tanvani even when the return was not filed and
only after I wrote letter to Registrar of Assurances , notice was issued for
filing of return and it was only in Oct 2000 , the return was filed. The office
of assessing office is already guilty of issuing of issuing ITCC immediately in
hot hurry without verifying facts. I have already made detailed submissions
covering all these aspects and and as mentioned earlier, the assessing officer
was required to take necessary steps in this regard.
It was the responsibility of the office of the assessing officer to inform the
Matter to the investigation department way back and take appropriate action
As the chavdas were raided in January 2003 and as on date the action has not
Been taken to acquire the property as there is violation of 37I permission
Not obtained.
In this connection, I am reminding you, you do not have any option but to
acquire bunglow so as to secure alleged recovery of taxes from the
undersigned . This would enable you to obtain legitimate dues of tax. As it is
grave and unpardonable illegal act on part of the office of assessing officer,
you can rectify the situation by acquiring the immoveable property from the so
called buyer before approaching me for any tax demand. As assessing officer ,
you are responsible as well as accountable to rectify the situation. I hope you
would not wish that embarrassing situation are being avoided.
Please note that once chavda disposes bunglow , you would not be able to
make any recovery of taxes from me. This bunglow is your only security
and therefore think deeply and act fast in your interest as well as interest
of revenue. One would not allow the horse to run away from the stable.
11. I am also enclosing letter addressed to Mr. Kashiparekh which is self
explanatory. . In case , he does not submit .detailed reply , you are bound to
issue legal notice. I hope you do not want to extend any favour to
him (annex 4).
12. Kindly read the annexure 10. I hope you can do deep introspection You also
know what happened when dahsratha shot Shravana and he lost Rama even
when it was unconscious act. You are also aware of Bhisma playing silent
spectator to Draupadi being stripped by Dushashana and he did nothing to
protect her. Bhishma paid his price. Read Gujarat samachar of 9th October
2003 to what Lord Krishna says.. Nature takes its revenge, when some one
harms another person and even while knowing does nothing about it. I hope
you have the sensitivity to act justly to find truth in the matter and calamity is
not going to fall on you when you stand up to your superiors.
13. Please note there is no communication about speeding up the appeal between
you and me as referred in your letter. Kindly also refer to my letter addressed to
CIT –appeals (annex 11). Please note that without clay, there cannot be bricks,
Without bricks , there cannot be foundation. Without foundation , there cannot be walls. Without walls, there cannot be roof. Without roof , there cannot be house. You shall have to start from basics. If one takes a wrong train in opposite direction, one needs to come back to catch right train. I hope you do not waste energy as well as unnecessary paper work without resolving fundamental issues.
14. I look forward to your detailed views to enable me to extend cooperation. I
reserve my additional comments after you furnish detailed homework is done
at your end.I look forward to your detailed and exhaustive reply in interest of justice as well as action taken in this regard and stop harassing me.
Yours sincerely,
P S. Mody
Annexure
1) Article that appeared in Sandesh
2) Letter addressed to CCIT_III
3) Copy of letter to AO 12-2-03
4) Copy of letter addressed to Kashiparekh October 17,2003
5) Copy of letter addressed to CCIT 4-6-03.
6) Copy of letter addressed by CIT –Mr. P.C.Sharma
7) Copy of my reply dated 25-5-2001
8) handwriting of Mr. Jalundhwala that transfer form issue was pending till May 97.
9) Valuation of property, Registratar of assurance office
10)Press cutting.
11) letter to CIT appeal.
The Assessing Officer, 11(2)
Narayan Chambers,
Ashram Road, Ahmedabad
Sir,
Your ref letter: letter dated 23/9/2003 for recovery of demand
1. I hope you go through the contents of my letter very carefully as it appears that you
have not gone through background material of this case and in the interest of
natural justice , I humbly request you to put your self in my shoes and refrain from
subjecting me to harassment and psychological torture. I am also enclosing article
which appeared in newspaper Sandesh (Annex 1) which states that every issue need
to be followed for logical conclusion. Many issues are to be cleared by you
. Besides, I am the one who has furnished information of tax evasion and I have been
thanked by DG vide his letter dated Seot 19,2000 and therefore, I
have reason to expect fair treatment and not subjected to any harassment especially
when the assessment orders are passed on assumptions and the facts have been
distorted.
2. In July 2002, the assessing officer took intiative on his own to rectify some of the
the mistakes which were apparent. I am sure such initiative can be taken by you in
view of natural justice.
3. Kindly furnish copy of finding of Shri R. Diwedi of the investigation department to
the undersigned the steps taken by you for collecting taxes from the companies as
referred in the letter addressed to me by the DG in September 2000. Till the issue is
resolved , to safeguard the interest of revenue , you have to attach the properties of
the companies involved.
4. Kindly note that I have made application for stay of demand is pending with the
concerned Chief Commissioner of Income Tax-III(Annex 2)is enclosed for your
ready reference. Till then you refrain from any further action.
5. I have already brought to the notice of The CIT-Appeals as regards to my letter dated
12-2-03 addressed to the predecessor aseessing officer.(annex 3) You shall furnish
findings in this regard.
6. Kindly refer to the assessment orders for 96-97, 97-98 and essential paragraphs are
being reproduced from the assessment yr 1996-97 as under:-
“ As per the details available, shares of FPPL were transferred on 1-3-1996 i.e. F.Y.
1995-96 and A.Y. 1996-97, whereas shares of RIPL were transferred on 3-4-1996
F.Y.1996-97 and A.Y. 1997-98. Now shares in a company is moveable property and transfer of moveable property is to be considered complete, as soon as moveable property is delivered along with completed transfer deed. Details were called
from Dhanyushya as all the details are in its possession in respect of transfer of
shares. Details have not been received from DFPL and hence it is not possible
to give finding in respect of exact date of transfer of shares along with
completed share transfer deed. It is a reasonable presumption that the shares must have been delivered , duly completed transfer forms, some days before the actual date of transfer recorded on the share certificate. As the transfer was registered on 3-4-1996, reasonable presumption or say possibly the shares must have been delivered a few days earlier i.e in the March 1996 i.e during the F..Y. 1995-96 and capital gains on it of transfer of shares, considering the circumstances, during the month of March 1996 and assess accordingly.”
In your words you explain in writing what the above narration states and what
requires to be done from your end.
7. In light of the above referred comments in the assessment order, I have reason to
present my primae facie views that first needs to be rectified and cleared by you:-
(a) For the same issue the demand is raised twice. Once in assessment year
96-97 and repeated again in assessment year 97-98 on protective basis.
In the interest of justice , it is necessary to ascertain the facts first, and
clarify first as to the year for which the alleged demand is applicable
by conducting necessary inquiries.with Dhanyushya , Jalundhwala, and
all concerned auditors and the escrow persons by obtaining joint
statement and furnishing copy of their reply to me. You are a mature
person and also having necessary authority to find information as the
narration has already stated that the assessment order is passed on the
basis of assumptions and details have not been obtained from
Dhanyuhsya . In case you fail to furnish all necessary information in
this regard, such raising of demand twice becomes illegal in the eyes of
law. Therefore , as concerned assessing officer, it is your legal and moral
duty and responsibility to clarify as to for what year the demand is
applicable according to you by conducting detailed inquiries.
(b) From the assessment orders it is not clear that you have ascertained that Dhanyushya has received original share certificates and transfer deeds from the escrow persons. Therefore, in the interest of justice, it is necessary to first physically locate possession of original share
certificates and original transfer deeds by obtaining the same from
Dhanyuhysa and Jalundhwala and seize the same and offer the same for
my inspection. Before justifying any demand from me, I have reason to
feel that they do not have such share certificates and transfer deeds as
they have not furnished such information in the suit filed by me.
(c) It has been on record that that Mr. Kashiparkeh is the auditor of
Rupmanglam and Flovin in March 96 , April 1996 and he has filed the return for my personal assessment year 96-97. You can call this chartered accountant who files various returns in the department. There is no reason why you should not conduct inquiries by asking him to produced detailed documentary evidence to ascertain truth and on ground of natural justice (annex 4).
(d) In the interest of natural justice ,you are empowered to take initiative for obtaining detailed information from the auditors of Dhanyushya as regards to the particulars of audited balance sheet reflecting ownership of shares in 1996 proving that the shares along with completed transfer deeds have been presented within validity period of two months to the respective companies for effecting transfer of shares. In absence of such comments, you cannot raise any tax demand.
(e) In light of various MOUs where the name of escrow persons have been
referred who were in possession of shares, transfer deeds, etc, you can take initiative of issuing notice to Dhanyuhysa and Jalundhwala as regards to they procuring written affidavit from the escrow persons as when the share certificates and transfer deeds have been delivered by them.
(f) How the office of assessing officer has assumed share valuation of Rs
2,40,000/share for face value of equity share amounting to Rs 100/share
especially when there is no valuation report in this regard. What prevents
you to obtain such valuation report from the concerned auditor showing
valuation of shares in 1996 and in 1998( 1998 in case of my brothers
family) . On the basis of such valuation of shares of 15000 shares with
voting rights , the value of the property would exceed Rs 300 crores
and would require follow up action by attaching and acquiring the
company properties.
(g) Please specify the steps by the office of the assessing officer, to obtain
replies obtained from the auditors, escrows and directors of
Dhanyuhshya as referred in the assessment orders of my other family
members.
8. Please note that the factual position has been distorted and twisted by the predecessor assessing officer as regards to the findings of the investigation department. In case, Dhanyuhsya had received physical delivery of shares ,
Mr. D. N.Kar of Investigation department would have drawn the attention of the
Assessing officer around May 98 as he had already made inquiries on the advance received from Dhanyuhsya and even Mr. Diwedi who took over in May 99 also did not raise such issue and communicate the same to the assessing officer then . This shows distortion and twisting of facts. It was I who had drawn the attention of the investigation department and in particular Mr. R. Diwedi and
Even at the time of recording of statement , he did not furnish any documentary evidence of shares and transfer deeds, et. which reflected that he had these details. Even the balances sheet of Dhanyushya for accounting year 96-97 did not reflect ownership of shares.
9. You are aware that a sum of Rs 14.40 lakhs (personal & huf) approximately only was received as advance from Dhanyuhsya which also included advance received for purchase of Core Biotech shares of the group company and therefore, there is no justification in clubbing any advance received in preceding financial year for the purpose of alleged capital gains tax without taking into consideration the facts in totality. In light of MOU, Dhanyuhsya and Jalundhwala has not obtained any written confirmation from the escrow persons have been physically delivered by the escrow persons to them. Besides, how come under common mou of all family members of mody family, the shares would be delivered by the escrows in 1996 and in 1998 ?. I am furnishing primae facie evidence of Mr. Jalundhwala handwriting which confirms that the transfer deeds had not been delivered to the escrow persons(annex 8)
10. I am drawing attention of the letter dated 16-12-2000 file no HQ III/101-M-
26/FORM NO 34/AR 8/2000-2001 dated 26-12-2000. P.C.Verma .
Commissioner of Income Tax, GUJARAT-III, Ahmedabad . P. C. Verma had
given reply that “ I have perused your complaint. In this regard, the Assessing
officers have been given appropriate instructions.” I am enclosing one of the
letters in this regard for your reference. It is necessary that you the subject matter
in total depth and rectify the wrong and great injustice done to me in issuing the
ITCC to my wife and my son in haste by verifying the facts.(Refer annex 6,7,9).
It is a fact that the ITCC has been issued by preceding assessing officer Mr.
Gangadharan and ACIT Mr. Tanvani even when the return was not filed and
only after I wrote letter to Registrar of Assurances , notice was issued for
filing of return and it was only in Oct 2000 , the return was filed. The office
of assessing office is already guilty of issuing of issuing ITCC immediately in
hot hurry without verifying facts. I have already made detailed submissions
covering all these aspects and and as mentioned earlier, the assessing officer
was required to take necessary steps in this regard.
It was the responsibility of the office of the assessing officer to inform the
Matter to the investigation department way back and take appropriate action
As the chavdas were raided in January 2003 and as on date the action has not
Been taken to acquire the property as there is violation of 37I permission
Not obtained.
In this connection, I am reminding you, you do not have any option but to
acquire bunglow so as to secure alleged recovery of taxes from the
undersigned . This would enable you to obtain legitimate dues of tax. As it is
grave and unpardonable illegal act on part of the office of assessing officer,
you can rectify the situation by acquiring the immoveable property from the so
called buyer before approaching me for any tax demand. As assessing officer ,
you are responsible as well as accountable to rectify the situation. I hope you
would not wish that embarrassing situation are being avoided.
Please note that once chavda disposes bunglow , you would not be able to
make any recovery of taxes from me. This bunglow is your only security
and therefore think deeply and act fast in your interest as well as interest
of revenue. One would not allow the horse to run away from the stable.
11. I am also enclosing letter addressed to Mr. Kashiparekh which is self
explanatory. . In case , he does not submit .detailed reply , you are bound to
issue legal notice. I hope you do not want to extend any favour to
him (annex 4).
12. Kindly read the annexure 10. I hope you can do deep introspection You also
know what happened when dahsratha shot Shravana and he lost Rama even
when it was unconscious act. You are also aware of Bhisma playing silent
spectator to Draupadi being stripped by Dushashana and he did nothing to
protect her. Bhishma paid his price. Read Gujarat samachar of 9th October
2003 to what Lord Krishna says.. Nature takes its revenge, when some one
harms another person and even while knowing does nothing about it. I hope
you have the sensitivity to act justly to find truth in the matter and calamity is
not going to fall on you when you stand up to your superiors.
13. Please note there is no communication about speeding up the appeal between
you and me as referred in your letter. Kindly also refer to my letter addressed to
CIT –appeals (annex 11). Please note that without clay, there cannot be bricks,
Without bricks , there cannot be foundation. Without foundation , there cannot be walls. Without walls, there cannot be roof. Without roof , there cannot be house. You shall have to start from basics. If one takes a wrong train in opposite direction, one needs to come back to catch right train. I hope you do not waste energy as well as unnecessary paper work without resolving fundamental issues.
14. I look forward to your detailed views to enable me to extend cooperation. I
reserve my additional comments after you furnish detailed homework is done
at your end.I look forward to your detailed and exhaustive reply in interest of justice as well as action taken in this regard and stop harassing me.
Yours sincerely,
P S. Mody
Annexure
1) Article that appeared in Sandesh
2) Letter addressed to CCIT_III
3) Copy of letter to AO 12-2-03
4) Copy of letter addressed to Kashiparekh October 17,2003
5) Copy of letter addressed to CCIT 4-6-03.
6) Copy of letter addressed by CIT –Mr. P.C.Sharma
7) Copy of my reply dated 25-5-2001
8) handwriting of Mr. Jalundhwala that transfer form issue was pending till May 97.
9) Valuation of property, Registratar of assurance office
10)Press cutting.
11) letter to CIT appeal.
posted by mody at 8:16 PM
