LETTER TO CIT-APPEALS (XVII) ON 24-2-04
By hand delivery
P. S Mody
Janmangal Apt,
40 BMM Society
Ahmedabad 380 006
24-2-2004
The Commissioner of Income Tax-Appeals (XVII)
Nature View Building
Ashram Road
Ahmedabad
Respected Sir,
Subject: appeals pending before you in case of individual and huf
1. This is in reference to the above appeal pending before you. I sincerely hope that the contents of my present letter are reread again.
2. I am narrating sequence of background information for your kind observation as under:-
P. S Mody
Janmangal Apt,
40 BMM Society
Ahmedabad 380 006
24-2-2004
The Commissioner of Income Tax-Appeals (XVII)
Nature View Building
Ashram Road
Ahmedabad
Respected Sir,
Subject: appeals pending before you in case of individual and huf
1. This is in reference to the above appeal pending before you. I sincerely hope that the contents of my present letter are reread again.
2. I am narrating sequence of background information for your kind observation as under:-
• As the case was examined in March 1998 by the ADI-Mr. D.N.Kar of the Investigation department, Unit 1(4), it is necessary to have that I be given a copy of such report along with observations and statements made by Dhanyuhysa and their associates.
• Mr. D.N.KAR in case he had concrete evidence of shares being transferred to Dhanyushya in March 96/April 96 , he would have furnished such documentary evidence at the time of interrogation and sought my explanation. He would have also passed on such concrete evidence to the assessing officer for raising the demand .The fact that he did not furnish such concrete evidence to me and the assessing officer , meant that the shares and transfer deeds were not handed over by the escrow persons consisting of Mr. Hemant Kashiparekh and Mr. Saurabh Soparkar to Mr. Jalundhwala and/or Dhanyuhsya Finanicial Pvt Ltd in 1996 but much later.
• On the basis of pressure exerted by Mr. Jalundhwala and other interested persons (such as Mr. Kashiparekh and Mr. Soparkar) on Mr. D.N.Kar, Mr. D.N.Kar made a phone call to Mr. Kashiparekh on 22-4-98 referring valuation of shares so as to scare me so as to hand over fresh transfer deeds issued in 1998 to the escrow persons.In case , he had such information of change in transfer of shares, he would have verified it by examining the audited balance sheet of Dhanyushya for period ending 95-96 and period ending 96-97 as part of routine investigation on Dhanyushya and on Mr. Jalundhwala. He would have been aware that the transfer of shares were not reflected in the audited balance sheet of Dhanyushya for period ending 95-96 and period ending 96-97. I was aware that the escrow persons had not delivered the shares and transfer deeds in march 96/april 96 as there were major issues of disputes and noncompliances by dhanyushya as regards to the conditions of mous. In absence of copy of the said balance sheet with me , there were chances that they would manipulate the balance sheet so as to show as if the share transfer could be shown by backdating the transaction at a future date. In view of investigation, my brother and my parents were cajoled and pressurized into handing over fresh transfer deeds in 1998 by Mr. Kashiparekh himself.
• Mr. Kar was avoiding to investigate the matter , when I had conveyed information on notices from Dhanyushya in 1998 by collecting the facts from Dhanyushya and Mr. Kashiparekh.
• Me. Diwedi who took over the charge from Mr. Kar, issued notice to the undersigned for my personal appearance and even at the time of issue of notice , he did not have any specific information that the shares were transferred in 1996 when he took charge from Mr. D.N.Kar. In case, he has such information , before he issued notice to me in March 2000, and he would have brought it to the knowledge of the assessing officer based on interim findings of Mr. D.N.Kar submitting detailed findings of Mr. D.N.Kar.
• The fact that the assessing officer did not have case of pending reassessment demand is clear from the way income-tax clearance was issued in case of my wife and my son in month of June 2000.
• The assessing officer promised to furnish reasons for reopening of reassessment vide his letter dated 26-6-2001 after my reply. Even though , I gave a reply vide my letter dated 28-6-2001 by specifically calling reasons.
• The assessing officer never communicated such reasons to the undersigned and passed assessment orders on basis of presumptions only as apparent from the assessment orders of my various family members.
• Even when, he had no valid reasons , he issues notices on 28-3-2002 and passes exparte assessment order in a hot hurry. I have reason to believe that other members of mody family were assessed by him and Mr. Kashiparekh appeared for them. and he had been under influence of Mr. Kashiparekh to pass such adverse orders.
• The assessing officer has confirmed that he did not have transfer deeds , meaning that he did not have any means to ascertain the value per share as Rs 2,40,000 per share in relation to shares of Rupmanglam.
• On the basis of total 15,000 shares ( equity and preference shares) comprising of voting rights, no buyers would consider it prudent to purchase 40 shares in 1996 valued at Rs 2,40,000 per share as it would tantamount to valuation of company assets at Rs three hundred sixty crores which you would agree is absurd. The assessing officer did not call for valuation report from the auditor of Rupmanglam in view of proceedings of investigation as referred in my letter addressed on 18-6-99 to the Chief Commissioner of Income Tax and Director General of Income tax where Mr. Kashiparekh has acknowledged receiving a call from Mr. Kar.
3. In order to come to right conclusions, I most humbly request you to collect and ascertain following facts:
• The same demand cannot be raised twice, once in assessment year 96-97 and same demand on protective basis again in assessment year 97-98. It is therefore absolutely essential to ascertain the facts, that is whether the alleged demand is in 96-97 or 97-98. This can be ascertained by issuing notice to Dhanyushya Financial Pvt Ltd, the directors of Dhanyushya –i.e. Mr. Jalundhwala and the auditors of Dhanyuhsya Financial Pvt Ltd. and the auditors of Rupmanglam Investment Pvt Ltd.
• In view of the mous referred in the assessment order , Mr. Jalundhwala is called upon to produce written confirmation from the escrow persons that they have delivered the share certificates and transfer deeds to Jalundhwala and/or Dhanyuhsya in year 1996.In absence of such confirmation from the escrow persons , Dhanyuhsya does not get legal title of shares of Rupmanglam and that of property of Rupmanglam.
• Dhanyushya is called upon to furnish certified copy of audited balance sheet of DFL showing acquisition of ownership of these shares.
• Dhanyushya and Jalundwala are called upon to produce the original transfer deeds and the original share certificates belonging to me and my family members.
• A copy of detailed findings from the investigation department is made available to me for my comments in view of natural justice to me.
• In view of my letter addressed to Kashiparekh dated 17-10-2003, whether the auditor of Rupmanglam confirms and endorses legal transfer of shares by the board of directors of Rupmanglam.by giving his written affidavit. and his signature identified by his bankers as witnesses.
• As I being the director in 1996 even according to Mr.Jalundhwala, he need to be called upon to furnish minute book records of Rupmanglam which he is deliberately avoiding to furnish. Any such documentary evidence, produced at a future date has no value as an evidence especially when I have repeatedly called for such information from the income tax department several times. The assessing officer and the concerned investigating officer of the investigation department is called upon in my presence to furnish such information , failing which it can be concluded that the shares are not owned by them and you have no alternative but to DIRECT seizing OF such shares and attach the assets of Rupmanglam Investment Pvt Ltd in the interest of revenue as the investigation department has acknowledged to me that there is tax evasion by four companies.
4. I most humbly request you to look into following submissions in view of natural justice:
• Wrting one single letter to the department involves cost of typing, Xeroxing and to/fro expense for delivering the same to the department and involves investment in time and it is expected of the assessing officers and their additional commissioner of income tax and their Commissioner of Income Tax ( I am referring Mr. M.C.Katheria ) to treat the assesses as human beinga and not as his servants. He and his staff working under him are expected to give a detailed reply to my letters addressed from time to time and not dodge the issues by passing the responsibility on your shoulders especially when they make mistakes. This is natural law of justice and this prevails over any other excuses.
• Mr. Kar was avoiding to investigate the matter , when I had conveyed information on notices from Dhanyushya in 1998 by collecting the facts from Dhanyushya and Mr. Kashiparekh.
• Me. Diwedi who took over the charge from Mr. Kar, issued notice to the undersigned for my personal appearance and even at the time of issue of notice , he did not have any specific information that the shares were transferred in 1996 when he took charge from Mr. D.N.Kar. In case, he has such information , before he issued notice to me in March 2000, and he would have brought it to the knowledge of the assessing officer based on interim findings of Mr. D.N.Kar submitting detailed findings of Mr. D.N.Kar.
• The fact that the assessing officer did not have case of pending reassessment demand is clear from the way income-tax clearance was issued in case of my wife and my son in month of June 2000.
• The assessing officer promised to furnish reasons for reopening of reassessment vide his letter dated 26-6-2001 after my reply. Even though , I gave a reply vide my letter dated 28-6-2001 by specifically calling reasons.
• The assessing officer never communicated such reasons to the undersigned and passed assessment orders on basis of presumptions only as apparent from the assessment orders of my various family members.
• Even when, he had no valid reasons , he issues notices on 28-3-2002 and passes exparte assessment order in a hot hurry. I have reason to believe that other members of mody family were assessed by him and Mr. Kashiparekh appeared for them. and he had been under influence of Mr. Kashiparekh to pass such adverse orders.
• The assessing officer has confirmed that he did not have transfer deeds , meaning that he did not have any means to ascertain the value per share as Rs 2,40,000 per share in relation to shares of Rupmanglam.
• On the basis of total 15,000 shares ( equity and preference shares) comprising of voting rights, no buyers would consider it prudent to purchase 40 shares in 1996 valued at Rs 2,40,000 per share as it would tantamount to valuation of company assets at Rs three hundred sixty crores which you would agree is absurd. The assessing officer did not call for valuation report from the auditor of Rupmanglam in view of proceedings of investigation as referred in my letter addressed on 18-6-99 to the Chief Commissioner of Income Tax and Director General of Income tax where Mr. Kashiparekh has acknowledged receiving a call from Mr. Kar.
3. In order to come to right conclusions, I most humbly request you to collect and ascertain following facts:
• The same demand cannot be raised twice, once in assessment year 96-97 and same demand on protective basis again in assessment year 97-98. It is therefore absolutely essential to ascertain the facts, that is whether the alleged demand is in 96-97 or 97-98. This can be ascertained by issuing notice to Dhanyushya Financial Pvt Ltd, the directors of Dhanyushya –i.e. Mr. Jalundhwala and the auditors of Dhanyuhsya Financial Pvt Ltd. and the auditors of Rupmanglam Investment Pvt Ltd.
• In view of the mous referred in the assessment order , Mr. Jalundhwala is called upon to produce written confirmation from the escrow persons that they have delivered the share certificates and transfer deeds to Jalundhwala and/or Dhanyuhsya in year 1996.In absence of such confirmation from the escrow persons , Dhanyuhsya does not get legal title of shares of Rupmanglam and that of property of Rupmanglam.
• Dhanyushya is called upon to furnish certified copy of audited balance sheet of DFL showing acquisition of ownership of these shares.
• Dhanyushya and Jalundwala are called upon to produce the original transfer deeds and the original share certificates belonging to me and my family members.
• A copy of detailed findings from the investigation department is made available to me for my comments in view of natural justice to me.
• In view of my letter addressed to Kashiparekh dated 17-10-2003, whether the auditor of Rupmanglam confirms and endorses legal transfer of shares by the board of directors of Rupmanglam.by giving his written affidavit. and his signature identified by his bankers as witnesses.
• As I being the director in 1996 even according to Mr.Jalundhwala, he need to be called upon to furnish minute book records of Rupmanglam which he is deliberately avoiding to furnish. Any such documentary evidence, produced at a future date has no value as an evidence especially when I have repeatedly called for such information from the income tax department several times. The assessing officer and the concerned investigating officer of the investigation department is called upon in my presence to furnish such information , failing which it can be concluded that the shares are not owned by them and you have no alternative but to DIRECT seizing OF such shares and attach the assets of Rupmanglam Investment Pvt Ltd in the interest of revenue as the investigation department has acknowledged to me that there is tax evasion by four companies.
4. I most humbly request you to look into following submissions in view of natural justice:
• Wrting one single letter to the department involves cost of typing, Xeroxing and to/fro expense for delivering the same to the department and involves investment in time and it is expected of the assessing officers and their additional commissioner of income tax and their Commissioner of Income Tax ( I am referring Mr. M.C.Katheria ) to treat the assesses as human beinga and not as his servants. He and his staff working under him are expected to give a detailed reply to my letters addressed from time to time and not dodge the issues by passing the responsibility on your shoulders especially when they make mistakes. This is natural law of justice and this prevails over any other excuses.
• Secondly , the conduct of CIT and their subordinates are like dushanana disrobing draupadi especially when they have extorted taxes from my wife and my daughter without a valid reason. They are not even ashamed of their acts and have no understanding to rectify the situation by returning the funds collected by them to the head of the family , that is the undersigned.
• Mr. Katheria needs to draw lessons from Telgi stamp case and the cases which involved nexus of advocates and the judge at a Metropolitan Court in Ahmedabad. Mr. Katheria and his staff , in view of my letters has confirmed that he has nexus between him and the chartered accountant Mr.Kashiparekh and others. Any common person would be able to see through it.
• I have also addressed letter to the Tax Recovery Officer on 29-1-2004 and copy has been marked by me to Mr. Katheria and Mr. Rawal and I as a citizen of a democratic country have basic right to information in the natural justice.
• As I am unable to afford legal fees of engaging a tax advocate , the income tax department shall give legal support in form a highly competent legal help of a counselor to represent my case before you. and the cost borne by the department.
• I hope that your colleagues treat the assesses like with respect , sanman and dignity and refrain from choosing escape mechanism when the errors are done by the officers working under them The department need to understand what our beloved Gandhiji said – “The customer is most ……..”. The assesses are your customers.
5. It is my earnest appeal that you give a deep thought to my contents of my present letter and take a detached view and do not get
carried away by the blindness , deafness ,dumbness and excuses of Commissioner of Income Tax , Mr. Katheria and his subordinates. But take drastic steps to pull them up the way our honourable Chief Justice of Supreme Court of India has realized it after the episode of nexus between advocates and the magistrate.
6. In order to move systematically , it is necessary to have this preliminary information from the concerned assessing officer so that further issues can be closely examined. I have already furnished copies of letter addressed to the assessing officers vide my letter dated 5-1-2004.
7. I am writing this letter with deep anguish and pain and I hope that you feel and understand the pain and anguish of a common citizen. when I have to arrange for funds from outside to draft and retype this letter to you. to prevent harassment by the department’s scoundrel Dushashana and Ravan sitting in the Narayan chambers. The department wants to enjoy breaking of the small families to support the great bank robbers, their chartered accountants and tax consultants so that they and the department officials flourish and enjoy respect in the society. The extract of the Chief Minister is being referred as under so that the staff in Narayan Chambers start understanding and implementing. I am absolutely determined to disturb their deep slumber of Kumbhkarna.
Thanking you.
Yours truly,
P S Mody
REPRODUCTION OF ARTICLE WHICH APPEARED IN INDIAN EXPRESS
CM’s advice for babus: turn karmayogis
Express News Service
Gandhinagar, February 10: CHIEF Minister Narendra Modi’s brain child — V-Governance (vibrant governance) — the Karmayogi Mahaabhiyan was launched at Town Hall in Gandhinagar on Tuesday.
This project was conceived to impart re-orientation training to 5 lakh government employees across the State to make them a people-friendly force. The project is expected to be completed by December 2005.
At the launch, Modi was at his best exhorting government employees and officers to get into the karmayogi mould and work hard with a team spirit to make the administration people-oriented. The babus listened to their ‘political master’ with rapt attention for over 90 minutes.
‘‘Can we afford to have a rigid, insipid administration? Who will wipe the tears of the poor and needy? Will you prefer to be mere silent spectators to your own colleagues running from pillar to post to get their pension papers cleared?’’ were few of the pointed questions that Modi directed at the babus.
He said the training project aimed to create a right kind of work culture and ambience in government offices and stir human sensitivity in employees. ‘‘Through the project, I don’t want to impose a particular ideology or a system on you. My efforts are only to tap your hidden potential for the betterment of our society,’’ Modi explained.
Modi said the project was conceived after weighing all the pros and cons at every level of the administration. He had held a series of workshops and chintan bethaks with government employees, right from peons and drivers to secretaries, over the last two years. ‘‘You’ll be able to protect your interests only if you protect the people’s interests,’’ he said.
Decrying attempts to rake up a controversy over the training project and the expenditure involved in it, Modi said a professional agency was engaged to implement the project quickly and effectively. ‘‘Don’t get into this controversy and carry on with the project,’’ he advised the gathering.
Ravi Parthsarthi, the managing director of Mumbai-based Infrastructure Leasing and Financial Services (IL & FS), said his firm was proud to be a partner in the project that was aimed at changing the attitude of government employees and officers and making the State administration vibrant.
Speaking on the occasion, Chief Secretary P K Laheri said the administrative machinery was meant to redress people’s grievances and bring about an all-round development in the State. But, the common man’s main complaint against the administration has been that ‘nothing is moving in the right direction’. It is the primary duty of officers to take quick decisions and resolve people’s problems.
5. It is my earnest appeal that you give a deep thought to my contents of my present letter and take a detached view and do not get
carried away by the blindness , deafness ,dumbness and excuses of Commissioner of Income Tax , Mr. Katheria and his subordinates. But take drastic steps to pull them up the way our honourable Chief Justice of Supreme Court of India has realized it after the episode of nexus between advocates and the magistrate.
6. In order to move systematically , it is necessary to have this preliminary information from the concerned assessing officer so that further issues can be closely examined. I have already furnished copies of letter addressed to the assessing officers vide my letter dated 5-1-2004.
7. I am writing this letter with deep anguish and pain and I hope that you feel and understand the pain and anguish of a common citizen. when I have to arrange for funds from outside to draft and retype this letter to you. to prevent harassment by the department’s scoundrel Dushashana and Ravan sitting in the Narayan chambers. The department wants to enjoy breaking of the small families to support the great bank robbers, their chartered accountants and tax consultants so that they and the department officials flourish and enjoy respect in the society. The extract of the Chief Minister is being referred as under so that the staff in Narayan Chambers start understanding and implementing. I am absolutely determined to disturb their deep slumber of Kumbhkarna.
Thanking you.
Yours truly,
P S Mody
REPRODUCTION OF ARTICLE WHICH APPEARED IN INDIAN EXPRESS
CM’s advice for babus: turn karmayogis
Express News Service
Gandhinagar, February 10: CHIEF Minister Narendra Modi’s brain child — V-Governance (vibrant governance) — the Karmayogi Mahaabhiyan was launched at Town Hall in Gandhinagar on Tuesday.
This project was conceived to impart re-orientation training to 5 lakh government employees across the State to make them a people-friendly force. The project is expected to be completed by December 2005.
At the launch, Modi was at his best exhorting government employees and officers to get into the karmayogi mould and work hard with a team spirit to make the administration people-oriented. The babus listened to their ‘political master’ with rapt attention for over 90 minutes.
‘‘Can we afford to have a rigid, insipid administration? Who will wipe the tears of the poor and needy? Will you prefer to be mere silent spectators to your own colleagues running from pillar to post to get their pension papers cleared?’’ were few of the pointed questions that Modi directed at the babus.
He said the training project aimed to create a right kind of work culture and ambience in government offices and stir human sensitivity in employees. ‘‘Through the project, I don’t want to impose a particular ideology or a system on you. My efforts are only to tap your hidden potential for the betterment of our society,’’ Modi explained.
Modi said the project was conceived after weighing all the pros and cons at every level of the administration. He had held a series of workshops and chintan bethaks with government employees, right from peons and drivers to secretaries, over the last two years. ‘‘You’ll be able to protect your interests only if you protect the people’s interests,’’ he said.
Decrying attempts to rake up a controversy over the training project and the expenditure involved in it, Modi said a professional agency was engaged to implement the project quickly and effectively. ‘‘Don’t get into this controversy and carry on with the project,’’ he advised the gathering.
Ravi Parthsarthi, the managing director of Mumbai-based Infrastructure Leasing and Financial Services (IL & FS), said his firm was proud to be a partner in the project that was aimed at changing the attitude of government employees and officers and making the State administration vibrant.
Speaking on the occasion, Chief Secretary P K Laheri said the administrative machinery was meant to redress people’s grievances and bring about an all-round development in the State. But, the common man’s main complaint against the administration has been that ‘nothing is moving in the right direction’. It is the primary duty of officers to take quick decisions and resolve people’s problems.
posted by mody at 2:29 PM
