The Bombay High Court has vacated the stay granted in
favour of First Global Stock Broking, paving the way for
the income-tax department to carry out the block assessment
proceedings on the company. The next hearing has been
posted to 3 July 2003.
high court had granted a stay on 7 May 2003 in favour
of First Global based on a petition field by the stock
broking firm against the I-T department. The grievance
of the petitioner was that the copies of floppies which
were seized and taken away by the department during the
raid carried out in the year 2001 should be returned to
the petitioner so that he could answer the show cause
notice sent by the department to him.
said matter came before the vacation judge justice A M
Khanwalikar last week. The department''s contention was
that it had copied the data on a blank floppy from the
hard disk of the petitioner and the hard disk still remains
with First Global.
the department had conducted the raid on the broking firm
in 2001. But the application for a stay of the block assessment
proceedings was made by First Global only in 2003, advocate
B M Chatterji for the IT department said.
Global managing director Shankar Sharma says he wanted
the floppy in the possession of the I-T department as
it would reveal the transactions since they were on the
day of the search. "I can prove my position of not
having undisclosed income only by showing the transactions
as they existed on that day. If I used my own copy the
I-T people will turn round and say I had doctored the
disk in my possession."
says the I-T department is reluctant to give the floppy
as its stand that First Global had undeclared income would
be exposed because the floppy would indicate all the transactions
that had taken place.
says there are several other pieces of evidence besides
the floppies that the I-T people had taken, including
books of accounts, which he needs to answer the show cause
notice the department had
sent him. "The law provides that the seized materials
should necessarily be given to the assesse by the I-T
department so that there is a fair assessment."