text
stringlengths
5
5.67k
It is significant that in the present case, the liability had even been quantified and a demand had been created in the sum of Rs 1,49,776 by means of the notice, dated November 21, 1957, during the pendency of the assessment proceedings before the Income Tax Officer and before the finalisation of the assessment PRE
It is not possible to comprehend how the liability would cease to be one because the assessee had taken proceedings before higher authorities for getting it reduced or wiped out so long as the contention of the assessee did not prevail with regard to the quantum of liability etc PRE
But, in this case, the orders of assessment have been set aside Ratio
If the orders of assessment have been set aside the liabilities of the Appellants have to be worked out on the basis of the new orders of assessment Ratio
So long, such orders of assessment are not passed by the competent assessing authorities, it cannot be said that the Appellants are liable to pay a huge amount by way of income tax dues on the basis of such orders of assessment which have since been set aside Ratio
A chart has been annexed to the additional written submissions filed by Mr. Desai, which originated from a letter dated 9th December, 2005 issued by the Office of the Commissioner of Income Tax showing the current status of the liabilities of the individual members of the Harshad Mehta group in the following terms: "(I...
Ashwin Mehta Rs Ratio
1396 crores, (II Ratio
Deepika Mehta Rs Ratio
120 crores (even after deducting the amount set aside by ITAT Ratio
it exceeds Rs. 63 crores Ratio
III Ratio
Late Harshad Mehta Rs Ratio
11829 crores Ratio
IV) Jyoti Mehta Rs Ratio
1457 crores Ratio
V) Hitesh Mehta Rs Ratio
73 crores (VI Ratio
Pratima Mehta Rs Ratio
115 crores (even after deducting the amount set aside by ITAT Ratio
it exceeds Rs Ratio
35 crores) (VII Ratio
Sudhir Mehta Rs Ratio
339 crores (VIII Ratio
Aatur Holdings Rs Ratio
15.95 crores (even after deducting the amount set aside by ITAT Ratio
2.7 crores Ratio
The Custodian has further brought on records that if the transactions by or on behalf of corporate entity, viz., Aatur Holdings Pvt. Ltd. and Dr. Pratima Mehta by way of illustration are taken into consideration, the same would reveal their modus operandi to the effect that the moneys were diverted from banks and finan...
These moneys were used for speculative transactions and securities and the profits generated was used for acquiring assets Ratio
The learned Special Court, having not arrived at such a finding, this Court is not in a position to go into the correctness or otherwise thereabout Ratio
In any view of the matter, the learned Judge, Special Court having not dealt with the question as regard the mode and manner of disbursements of the amount so far as the tax liabilities of the Appellants are concerned elaborately, the same requires fresh determination in the light of the decision of this Court in Harsh...
1998 Indlaw SC 732 (supra Ratio
In fact, the Appellants have brought on records various orders passed by Income Tax Appellate Authorities to show that the demands of the revenue have been set aside Ratio
Furthermore, the orders of the appellate authority have been passed during pendency of this appeal Ratio
This Court, it is trite, can take into consideration the subsequent events Ratio
Such subsequent events could also be taken into consideration for the purpose of review Ratio
In Board of Control for Cricket in India and Another v. Netaji Cricket Club and Others [(2005) 4 SCC 741] 2005 Indlaw SC 1243 PRE
this Court held: "It is also not correct to contend that the Court while exercising its review jurisdiction in any situation whatsoever cannot take into consideration a subsequent event PRE
In a case of this nature when the Court accepts its own mistake in understanding the nature and purport of the undertaking given by the learned Senior Counsel appearing on behalf of the Board and its correlation with as to what transpired in the AGM of the Board held on 29-9-2004, the subsequent event may be taken into...
In view of the aforementioned pronouncement of law, we are of the opinion that it is absolutely necessary to request the learned Special Court to consider the matter afresh Ratio
Sale of commercial properties has never been seriously contested by the Appellants Ratio
In fact one of the contentions raised on behalf of the Appellants had been that if commercial properties are sold, there would be no need to sale the residential properties ARG
This Court also in its order dated 5th May, 2004 clarified that the interim order dated 30th January, 2004 shall not be applicable as regard sale of commercial properties as even before this Court the same had not been questioned Ratio
It is, furthermore, not in dispute that third party rights have since been created by reason of sale of a large number of commercial properties Ratio
By an order dated 30th January, 2004, while admitting the appeals, this Court directed: "The learned counsel for the Custodian brings on record the result of the bids and the order of the Special Court dated 17.December.2003 and 20.January.2004 FAC
The learned counsel for the Appellants proposes to offer his comments on the bids and the two orders of the Special Court FAC
Let it be done within two weeks FAC
The process of finalizing the bids according to law may be proceeded ahead by the Special Court FAC
However, the finalization shall be subject to the result of these appeals FAC
The said order, however, was modified and clarified by an order dated 5th May, 2004 that the same shall not apply to the sale of commercial properties in view of the order of the learned Judge, Special Court dated 17th October, 2003 wherein it was pointed out that the notified parties did not dispute the commercial pro...
In that view of the matter, evidently, creation of any third party interest is no longer in dispute nor the same is subject to any order of this Court PRE
In any event, ordinarily, a bona fide purchaser for value in an action sale is treated differently than a decree holder purchasing such properties PRE
In the former event, even if such a decree is set aside, the interest of the bona fide purchaser in an auction sale is saved PRE
See Zain-ul-Abdin Khan v. Muhammad Asghar Ali Khan - 15 IA 12 1887 Indlaw PC 13 PRE
The said decision has been affirmed by this Court in Gurjoginder Singh v. Jaswant Kaur PRE
Smt.) and Another [(1994) 2 SCC 368] 1994 Indlaw SC 1613 PRE
In Janak Raj v. Gurdial Singh and Anr PRE
1967 (2) SCR 77], 1966 Indlaw SC 120 PRE
this Court confirmed a sale in favour of the Appellant therein who was a stranger to the suit being the auction purchaser of the judgment-debtor's immovable property in execution of an ex parte money decree in terms of Order XXXI Rule 92, Civil Procedure Code PRE
Despite the fact that ordinarily a sale can be set aside only under Rules 89, 90 and 91 of Order XXXI, it was opined that the court is bound to confirm the sale and direct the grant of a certificate vesting the title in the purchaser as from the date of sale when no application in term of Rule 92 was made or when such ...
In Padanathil Ruqmini Amma v. P.K. Abdulla [(1996) 7 SCC 668] 1996 Indlaw SC 3096, this Court making a distinction between decree-holder auction purchaser himself and a third party bona fide purchaser in an auction sale, observed : "The ratio behind this distinction between a sale to a decree-holder and a sale to a str...
But for such protection, the properties which are sold in court auctions would not fetch a proper price and the decree-holder himself would suffer PRE
The same consideration does not apply when the decree-holder is himself the purchaser and the decree in his favour is set aside PRE
He is a party to the litigation and is very much aware of the vicissitudes of litigation and needs no protection PRE
We, therefore, do not interfere with that part of the order whereby and wherewith the auction sale, as regard commercial properties, had been directed by the learned Judge, Special Court Ratio
The learned Judge, Special Court, may, therefore, proceed to pass an appropriate order as regard confirmation of the sale of such properties Ratio
RESIDENTIAL PROPERTY Ratio
In these appeals, we are concerned with sale of eight residential flats in a building known as Madhuli Ratio
The flat belonging to the mother of Late Harshad Mehta has been released Ratio
The flats, however, during pendency of these appeals have been sold in auction Ratio
One of the flats being flat Ratio
No. 202 Ratio
Arunachal Bhawan, Barakhamba Road, is subject matter of a separate proceeding pending before this Court, viz., Civil Appeal Ratio
No. 681 of 2004 Ratio
In these appeals, we are not concerned with the said flat Ratio
Admittedly, the flats have been sold subject to the result of these appeals Ratio
The flats have been sold on the basis of the joint liabilities of the Appellants together with Harshad Mehta and other companies as a group Ratio
The liabilities of the Appellants, in view of our findings aforementioned, are required to be considered afresh by the learned Judge, Special Court Ratio
The purchasers have also filed applications for their impleadment in these appeals Ratio
We, however, have not heard the purchasers as the question as to whether the auction sale of the said flats will be confirmed or not will depend upon the ultimate finding of the learned Judge, Special Court upon consideration of the matter afresh in the light of the observations made hereinbefore Ratio
We, therefore, would direct that the confirmation of sale of those flats be considered and appropriate order thereupon may be passed by the learned Special Court while considering the matter afresh Ratio
In the light of the directions issued herein, it would be for the purchasers of the said flats to wait till a final decision is made or take back the amount deposited by them, subject to any other or further order (s) that may be passed by the learned Special Judge Ratio
CONCLUSION Ratio
In view of our foregoing discussions, we are of the opinion that: (i Ratio
The contention of the Appellants that they being not involved in offences in transactions in securities could not have been proceeded in terms of the provisions of the Act cannot be accepted in view of the fact that they have been notified in terms thereof Ratio
The Appellants being notified persons all their personal properties stood automatically attached and any other income from such attached properties would also stand attached Ratio
The question as to whether the Appellants could have been considered to be part of Harshad Mehta Group by the learned Special Court need not be determined by us as, at present advised, in view of the fact that appropriate applications in this behalf are pending consideration before the learned Special Court Ratio
The question as regard intermingling of accounts by the Appellants, herein with that of the Harshad Mehta Group and/ or any other or further contentions raised by the parties hereto before us shall receive due consideration of the learned Judge, Special Court afresh in the light of the observations made hereinbefore Ra...
As regard the tax liabilities of the Appellants, herein, we would request the learned Judge, Special Court to consider the matter afresh in the light of the observations made hereinbefore Ratio
The learned Judge, Special Court, in this behalf, having regard to the fact that several orders of Best Judgment Assessment have been passed by the Assessing Authority, may take into consideration the ratio laid down in the decision of this Court in Harshad Shantilal Mehta Ratio
The learned Special Court shall proceed to pass appropriate orders as regard confirmation of the auction sales in respect of commercial properties Ratio
v) As regard, sale of residential properties, an appropriate order may be passed by the learned Judge, Special Court in the light of the observations made hereinbefore Ratio
vi Ratio
We direct the Custodian to permit the Appellants to have inspection of all the documents in his power or possession in the premises of the Special Court in the presence of an officer of the court Ratio
Such documents must be placed for inspection for one week continuously upon giving due notice therefor to the Appellants jointly Ratio
As the Appellants have been represented in all the proceedings jointly, only one of them would be nominated by them to have the inspection thereof Ratio
The Appellants shall be entitled to take the help of a Chartered or Cost Accountant and may make notes therefrom for their use in the pending proceeding Ratio
The Appellants shall file their objections to the said report, if any, within ten days thereafter Ratio
The Custodian may also take assistance and/ or further assistance from a Chartered Accountant of his choice Ratio
A reply and/ or rejoinder thereto shall be filed within one week from the date of the receipt of the copy of the objection Ratio