LETTER TO TAX RECOVERY OFFICER ON 29-1-04

BY HAND DELIVERY

P S MODY
40 BMM SOCIETY
PALDI , AHMEDABAD 380 006
DATED 29-1-2004



29-01-2004

The Tax Recovery Officer
Narayan Chambers
Ashram Road
Ahmedabad

Sir,
Sub: Summons under Rule 83 of the schedule 2nd to the I.T. Act
File no: TRO-11/SPC/133-II/2002-03 (180-A) dated 22-1-04
For A.Y. 97-98, 98-99,99-2000
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01. Please refer to your letter dated 22-1-2004 for recovery of tax demand.

02. I am drawing to your kind attention to the following information and happenings which you may not probably be aware of :-

· All the demands are raised on the basis of presumption basis as per various reassessment orders without verifying the facts first.

· The appeal is pending before the Commissioner of Income Tax-XVII.

· I have filed application for stay of demand to the learned Chief Commissioner of Income Tax-III on 3-9-2003 and the application for stay of demand is pending before him. The copy of my letter date 9-12-2003 is enclosed herewith for your reference..

· I have written to the Assessing Officer 11(2) dated 12-2-2003 and 17-10-2003 and 8-12-2003 .Copies are enclosed herewith. I may state that the assessing officer lacks sensitivity to be a compassionate human being. When he is able to sleep inspite of my efforts to wake him up, it means that he is playing deaf and dumb or he has joined hands with the auditors, tax consultants and the directors of Dhanyushya Financial Ltd . He has deliberately blindfolded like Gandhari and does not want to lift the curtain from his eyes All he is interested in his take home salary and does not mind harassing the assesses for no rhyme or reason. He is not a kid that he requires spoon feeding from his bosses. He is supposed to be educated officer. He is also expectedly not a coward type of person that he cannot conduct inquiries against the auditors in view of natural justice to the undersigned. I sincerely wish that you go through the contents of the letter several times, understand and grasp the subject matter in depth and demand detailed written explanation from the assessing officer before pursuing the matter further. I would like to have your feedback on those points at an early date.

· I have written to the Commissioner of Income Tax, Mr. M. C. Katheria,vide letters dated 16-12-2003, 3-6-2003 , 4-6-2003 and my letter dated 9-12-2003. In absence of his reply and response, one can conclude that he has joined hands with the auditors , tax consultant and directors of Dhanyuhsya Financial Ltd. I hope that you have courage to write to your boss to write a no nonsense letter addressed to him and demand from him to furnish a detailed copy of explanation, evidences, statements, etc. to the undersigned. He is not a baby that he requires spoon feeding.

03. In the interest of natural justice, I request you to take following steps:-

a. I have my deposits lying in Flovin Plastics Pvt Ltd. You shall attach all the assets of Span Medicals Ltd and Dhanyushya Financial Ltd. who has claimed to have amalgamated Flovin Plastics Pvt Ltd.

b. You shall attach and acquire Bunglow no 1 called amrashagun situated in Ramdevnagar near Satyagrahchavni immediately as the assessing officer Mr. Gangadharan and Mr. Vinod Tanvani had given immediate tax clearance in a hot hurry without verifying the facts in the interest of revenue and gave clearance for a sale consideration of Rs 18.00 LAKHS WHICH IS SUBSTANTIALLY LOWER THAN PURCHASE PRICE OF RS 24.00 LAKHS AND IN TOTAL DISREGARD OF PROVISIONS OF 37I. In the interest of revenue of collecting taxes from Chavdas –the so called purchaser , you and the department are duty bound to attach and acquire the referred bunglow. The concerned Commissioner of Income tax had issued instructions to the assessing officer in light of my letter addressed to him. All the information are available with the department in this regard. Even when the Investigation department has raided the chavdas in January 2003 , how come chavdas are permitted to go scot free inspite of all the information available with the Income tax wing much prior to January 2003 as provided by the undersigned.

c. All the tax forcibly recovered from my wife, my daughter and my son, is without any justification and have been extracted from them by scaring them and without ascertaining the facts and you shall immediately refund the amount to the undersigned, as in fact, that the department has made recovery of tax demand. As I am the director of Rupmanglam and Flovin ,
When the shares have been alleged to be transferred, the shares cannot be
transferred by any one and no demand can raised by the department for
capital gains tax from them without my written approval in the board
meetings of the company.



d. As I have been informant of tax evasion and as Mr. Betgiri, Director General of Income tax-Investigation has confirmed my allegations of tax evasion , I , as an informant am entitled to claim amount reward by the department and I am exercising my right for the same and you shall collect the same and keep it in separate bank account under joint signature, immediately under intimation to me .

e. To give full justification to the spirit of the letter dated September 19,2000
issued to the undersigned, in order to have an holistic and coherent view ,
the department is supposed to attach and acquire Rupam bunglow as there
would be loss of revenue on account of total disregard to the provisions of
S 123 of Transfer of Property Act and provisions of 37I of Chapter XX-C
of the Income tax Act..

04. I do not have any source of income and nor do I have any bank balance to pay illegitimate tax demands raised by the department. which you may kindly note. In absence of detailed reply to queries satisfactorily, you are not legally and ethically justified in initiating steps for recovery of tax from the undersigned. Any methods of using coercion to extort tax without fully justifying the demand is going against the principles of natural justice to any citizen of the country and is liable to be questioned before the National Human Rights Commission at your cost and consequences, New Delhi. which you must note carefully. I have reason to believe that as per the provisions of the Right To Information Act , I am entitled to full information.

05. In absence of your detailed reply , evidence, etc from you as well as concerned department officials , it would be construed that your demand is purely on presumptions and is without any justification.

06. Your detailed reply would be very much appreciated.

Thanking you.

Yours sincerely,

P S MODY

Annexure: 1) Correspondence with assessing officer,11(2)
2) Correspondence with Commissioner of Income Tax , V
3) Correspondence with The Chief Commissioner of Income Tax-III

COPY MARKED TO: 1) THE ASSESSING OFFICER, 11(2)
2) THE ADDITIONAL C.I.T- RANGE 11
3) THE COMMISSIONER OF INCOMETAX- V
4) THE CHIEF COMMISSIONER OF INCOME TAX-III