Either Income Tax Act and Rules are for BIG Tax Evaders or IT Personnel are gratified ?

CONCEALMENT OF HUGE  BLACK MONEY EXPOSED: BUT  ENQUIRY REPORT  MANIPULATED UNDER CRIMINAL CONSPIRACY.

VOHRA COMMITTEE REPORT

We Indian, whether working in the Judicial system or in any other area had totally forgets the Report of one important Committee, constituted to examine Nexus between Politics-Bureaucracy-Crime Nexus. Government of India through its order No.S/7937/SS(ISP)/93 dated 9th July 93 established a Committee consisting the Members amongst Home Secretary as its Chairman,  Secretary Raw, Member, Director IB, as Member, Director CBI, as Member, JS (PP) MHA as Member Secretary. In the Report Committee in clear terms referred that Director CBI stated interalia that an “organised crime Syndicate/Mafia generally commences its activities by indulging in petty crimes at the local level, mostly related to illicit distillation / gambling / organised satta and prostitution in the larger towns, in port towns, their activities involve smuggling and sale of imported goods and progressively graduate to narcotics and drug trafficking. In the bigger cities, the main source of income relates to real estate- forcibly occupying lands/buildings, procuring such properties at cheap Rates by forcing out the existing occupants /tenants etc. Over time, the money power thus acquired is used for building up contacts with bureaucrats and politicians and expansion of activities with impunity. The money power is used to develop a network of muscle-power which is also used by politicians during elections.

                CBI has reported that all over India crime Syndicates have become a law unto themselves. Even in the smaller towns and rural areas, muscle-men have become the order of the day. Hired assassins have become a part of these organisations. The nexus between the criminal gangs, police, bureaucracy and politicians has come out clearly in various parts of the country. The existing criminal justice system, which was essentially designed to deal with the individual offences/crimes, is unable to deal with the activities of the mafia; the provisions of law in regards to economic offences are weak; there are insurmountable legal difficulties in attaching/confiscation of the property acquired through Mafia activities. It has been suggested that the menace has first to be tackled at the local level where the agencies of the State and the concerned Central Enforcement Agencies like Customs and Excise, Income-Tax etc., would be required to take effective action. In cases where a crime Syndicate has graduated to big business, it would be necessary to conduct detailed investigations into its assets, both movable and immovable.”

                My feelings of suffering were fully vindicated by the aforesaid findings of the Vohra Committee. As per Newspaper Reports, during the Emergency three persons from Kolkata Mr. Radhey Shyam Tulsian, Mr. Shankar Saraf and Govind Prasad Agarwal were arrested, on the allegations that they were indulged in the misuse of their Import Licenses.

                Mr. Kedar Nath Fatehpuria, the then Employee of Sahu Jain Estates and Mr. Sanjay Kumar Jhunjhunwala Employee of Rajgarhias, jointly developed a housing project for the construction of the residential flats at 9/1, Lower Rowdon Street, Kolkata. This was their first joint project between them, which gradually further got developed in the forging further bonds of relationship through matrimonial alliance. Mr. Fatehpuria gave his sister in marriage to Mr. Jhunjhunwala.

                Earlier Mr. Jhunjhunwala was in service of Rajgarhias at just Rs.300/- per month. After these developments  Mr. Jhunjhunwala could purchase properties at James Long Sarani, Kolkata. In the meantime, without going in to the veracity of the financial position or otherwise knowing to have some backing from some high-up, and perhaps under the nod of Sri Jyoti Basu, the then Chief Minister, the Kolkata Municipal Corporation (under the control of the man of Sri Jyoti Basu, i.e. Sri Kamal Basu) granted a contract in favour of M/S. Martin Burn Limited (Company controlled by Fatehpuria and family) for rebuilding the burnt portion of the New (Hogg) Market, with permission to construct an extra 97,000 Square Feet for the Shops, with the right to lease them out at their own premium.

                For such a construction, as per the then prevailing rate of premium, such a contract ought to have been gone for about Rs.15 Crores. But, it was awarded ust as a platter for a mere Rs.1.05 Crores. It means that the gap between the amount of Rs.1.08 Crore and that of Rs.15 Crores was somewhere to be negotiated or bargained. After bagging this contract, these people started indulging into the grabbing activity of various public and private properties taking it to be granted that they would be safe and protected under the clout of Sri Jyoti Basu and his coterie,  as well as from the hands of the governmental machinery of West Bengal and also from Kolkata Municipal Corporation. I was his first victim to have suffered severely under the impact of the power of his muscle and black money generated and protected through the Nexus he was able to build with powerful politician like Shri Jyoti Basu.

                As such I had to decide to bring into the picture some how or the  other the Department of the Income Tax. As an individual like me it was not possible to bring to the all the necessary information relating to the transactions based on large sums of black money, therefore, as a test case, I collected some information relating to one of the transactions of purchase of the property viz. 53, Ramtanu Lahiri Sarani, New Alipore, Kolkata. According to my Information, the said property was purchased in 1989-90 in favour of 2 (two) Companies, on payment of Rs.40 Lakhs.   

                In 1989-90, in Kolkata, under Section 269UC of Income Tax Act, 1961 for any transaction relating to any immovable property of more than Rs.10 Lakhs, it was obligatory upon the seller to serve a Notice in Form 37-I of I. T. Act. Had, the I.T. Department assessed that alleged agreement, which was based on black money then the department itself would have acquired the property on the same terms and conditions that were mentioned in the respective agreement, Contrary to the said provision Mr. Jhunjhunwala decided to purchase the said property in clear violation of the said provision. In the Sale Deeds the total amount of the purchase was mentioned as Rs.19 Lakhs. But to put the dust in the eyes of IT Department, Mr. Jhunjhunwala under criminal conspiracy with joint sellers of the said property manoeuvred to divide the purchase in six deeds, just to circumvent the obligatory compliance of the said provision. This was openly an activity involving financial bungling and hence culminating in criminal activity.   

In this regard, I made complaints to Appropriate Authority, Competent Authority, Chief Commissioner of Income Tax, Kolkata, CBDT etc. As the violation was of a very serious nature as it was punishable not only under the IT Act but also under the IPC for abetment of the crime.   But, regretfully no action was taken by any authority.

                I have taken the aforesaid matter as a test case, considering this transaction as a proof of his modus operandi to violate the IT Act, in all of his transactions, as such I repeatedly made complaints before all the respective authorities including CBI, CVC, FM .

     Now under the RTI Act, I am able to obtain a photocopy of a letter, written in 1996 by th CBI to the IT Deptt., which says that it had not open any enquiry in the matter, suggesting thereby to the IT Department that no enquiry is required. I could also get some other very crucial  documents from the Income Tax Department which suggest that in 1996 a raid with ‘Search’ and resulting in ‘Seizure’ was conducted.           

                After the receipt of such important documents from the IT Deptt. I again wrote to the CBI and others to start a criminal proceeding against those public servants who are responsible for non-action in the matter of violation of Section 269UC of IT Act. In response thereof, I received Memo Letter No. 4445/CA-643/07 dated 11.07.2007 from CP, CBI, ACB, Kolkata interalia stating that “As far as allegations against Income Tax Officials is concerned you may furnish specific verifiable details of such public servants and specific allegation against them.”

                It is surprising. Better, they would have advised me to even to do the job of preparing a charge sheet, on their behalf, leaving for them just only to sign on the dotted lines.

                It is a well known fact that the CBI and CVC are White Elephants who rest on the Consolidated Funds of India. Are they meant just to be used by the politically elite personalties or their henchmen to carry forward their errand?

                Finally, in response to application dated 16th January, 2006 seeking Information that “what action were taken by Central Board of Direct Taxes on my Complaint dated 16th November 1989 and 27th July 1990 both addressed to the Appropriate Authority of Kolkata, The Competent Authority, and Director of Inspection (Investigation), all from the Income Tax Department, Kolkata-700069, with copies to CBDT, with reference to concealment of money actually paid against instruments executed, in respect of properties comprised in 53, Ramtanu Lahiri Sarani, Plot No. 42, Block “C”, New Alipore, by illegally dividing one unit of property against principle settled by the Judgment dated 13th March 2001 in the Civil Appeal 5426 of 1997 by Supreme Court by a Bench comprising S.P.Bharucha, J, as His lordship then was and N. Santosh Hegde and Y. K. Sabarwal, JJ., with reference to similar other several disputes between the Parties and Income Tax Department, in to six purchase Deeds and by further dividing the purchasers as Two separate Companies Registered Under Companies Act, in one of which Sanjay Kumar Jhunjhunwala himself was Director and in another Company his Accountant (Employee) under his instructions was Director' in which after orders of Hon'ble Information Commissioner A. N. Tiwari, under the signature of Mr. B S Sondhi, Member Appropriate Authority-I, and Mr. S. Chakraborty, Member Appropriate Authority-II, ignoring Section 7(9) of RTI Act, 2005 gave a detailed Order in which it is clearly mentioned that no statement in Form 37-I, was ever received from the intending buyer and seller of the immovable property. Accordingly, the appropriate authority had no jurisdiction to pass an order u/s 269UD to purchase or otherwise in respect of the aforesaid property, ignoring their official duty to attract Section 131 read with Section 276AB of Income Tax Act, 1961 to initiate criminal proceedings against sellers and purchasers, as and when violation comes to the Notice of the Appropriate Authority. Rather they appears to working as agent of the aforesaid Violators, thus contrary to aforesaid decision of lack of Jurisdiction in the aforesaid Order they unwarrantedly cited 1995 judgment of Kerala High Court and 1981 Judgment of Kolkata High  Court, ignoring the impact of the aforesaid Judgment of Supreme Court. Director of Income Tax (Inv.) Kolkata also forwarded final Report from which violation of Section 269UC of Income Tax Act, too was evident.

                Why was this violation?

Because, As per the provisions of the aforesaid Act, it is an essential custome that before singing any agreement, the part of the black money is deposited with the seller. In view of the prevailing market price the respective property should not have been purchased, in any case, for less than Rs.40,00,000/-. While the amount of the consideration money is shown in the respective Deeds just Rs.19,00,000/-. If he would have permitted his seller to submit the Form 37A, then Rs.20 Lakhs, would have been put under a risk, if in that case there was every possibility that the IT Departments would have been decided to acquire the said properties.

                The Director of Income Tax(Inv.) Kolkata, informed through Memo Letter No.DIT-Inv/Sec-7/07-08/403 dated 30/4-8/05/2007, that “as per final report Dated 31/03/97” “Total  concealment of Rs.13,20,08,222/- was detected tentatively' and 'the group as a whole submitted six disclosure petitions making a disclosure of Rs.9,54,94,906/-” Income Tax Department also supplied the aforesaid Final Report, under reference DIT(INV.)/CAL/96-97/U-III/4282 dated 31/03/97 subject matter of final report was referred as: “Final report in the case of “Criminal misconduct in respect of black money of more than Hundred Crores of Rupees -M/S. Martin Burn Ltd.',  which was obtained from my specific complaint. In the said Letter Director IT(Inv.), Kolkata further mentioned that “M/S. Martin Burn Limited has paid Rs.1,04,78,160/- as Premium to CMC (Kolkata Municipal Corporation), at he rate of Rs.1,080 per sq. mt. for an area of 9702 Sq. Mt. This project commenced in 1986-87 and completed in 1992-93.” He further mentioned that “The list of purchasers of shops in this premises was also obtained. It was found from some of such purchasers that sale rate was just Rs.800/- to 1000 per Sq. Feet.”           

That now this is evident from the documents received by me from the other Public Authority, Rate of shops were varied subject to involvement of the black money. For instance (1) Shop No. N3-041 measuring 9.222 Sq, Mt., against Rs.3,12,000/-, Rs.2876.64 per Sq. Ft.) (2) Shop No. N3-019 to N3-032 measuring each between 8.774 Sq, Mt. and 9.875 Sq, Mt., against payment for each between Rs.3,07,500/- and Rs.3,61,500/- (Between Rs.2,698/- and Rs.3,570/ per Sq. Ft.). On the other hand several Shops of approximately 8 or 9 Sq, Mt were shown against sale price of Rs.120,000/- or Rs.160,000/-.

                In view of such discrepancies this is obvious that aforesaid final report on the basis of which aforesaid Letter was forwarded by Director of Income Tax (Inv.)Kolkata was a FIXED REPORT. This also confirmed from the fact that whenever any Raid or Search or Seizure is carried out by the Income Tax Department, it should have been conducted against all the members of that particular group or that particular Company named in my Complaint. If Income Tax Department could have acted honestly and without any political or other influence, in such case the concealment of the black money would not have been less than Hundred Crores of Rupees.

                The respective Land mafia is having close Nexus with Sri Jyoti Basu and Sri Som Nath Chatterjee, it can well be imagined that what might have taken place during the exercise of the so-called Search?

From the aforesaid Final Report some serious questions also arises, which needs to be clarified by the Revenue Department in the Finance Ministry and also by the Central Board of Direct Taxes. These questions are as under:

1.             Why Raids were not conducted against all the Members of the admitted Group, including Mr. Sanjay Kumar Jhunjhunwala, whose name was specifically and particularly referred in the respective complaint, and on the basis of which the aforesaid Raid was conducted?        

2.             If the Raids were conducted against all the Members of the said Group including Mr. Sanjay Kumar Jhunjhunwala, Mr. Sanjay Kumar Agarwal, Kedar Nath Fatehpuria, Mr. Om Prakash Fatehpuria  Mr. Bijoy Kumar Fatehpuria, Mr. Kailash Nath Fatehpuria, and their firms and their Limited Companies, then why this fact was not mentioned in the final report.

3.             Why the concealment of money was not found by the Income Tax Department from Mr. Sanjay Kumar Jhunjhunwala,   Mr. Sanjay Kumar Agarwal,  Kedar Nath Fatehpuria, Mr. Om Prakash Fatehpuria Mr. Kailash Nath Fatehpuria, Mr. Bijoy Kumar Fatehpuria and their firms, and their Limited Companies?

4.             Whether the Income Tax Department was satisfied that Mr. Sanjay Kumar Jhunjhunwala, Mr. Sanjay Kumar Agarwal,  Kedar Nath Fatehpuria, Mr. Om Prakash Fatehpuria Mr. Kailash Nath Fatehpuria, Mr. Bijoy Kumar Fatehpuria and their firms, and their Limited Companies are not making any transaction based on black money, if so then what is the answer of the Revenue Department regarding admitted violation of Section 269UC of Income Tax Act, 1961 at the behest of Mr Sanjay Kumar Jhunjhunwala?

                In fact Income Tax Department through various information supplied under RTI Act virtually admitted that the violation was committed, but the Jurisdiction of the Income Tax Department, in the matter, could not be exercised because of the failure of the submission of Form No. 37A by the party.

                If this stand has any pertinence of legal value, then  what for Section 276AB of the Income Tax, Act, 1961 was brought in?

                It is to be noted that this Section empowers to Income Tax Department to initiate criminal proceedings against violator of Section 269UC of the IT Act, 1961. This do not emplied any condition that criminal proceeding can be initiated only after submission of Form 37A. Therefore, after receipt of my repeated complaints why Income Tax Department under the direct supervision of the Department of Revenue, CBDT why not initiated criminal proceedings against such serious violation.

                Why Income Tax Department not informed me (the Complainant for respective Search) that they failed to trace out black money more than Hundred Crores of Rupees, as per my claim? Because they prepared Final Report as per dictate of the Land Mafia who is having close Nexus with powerful politician of the country viz. Shri Jyoti Basu, the then Chief Minister of West Bengal and Shri Som Nath Chatterjee.  

                In West Bengal several Newspapers brought out stories regarding the Nexus between Sri Jyoti Basu and Kedar Nath Fatehpuria. Income Tax Department in its Final Enquiry Report has admitted that Radhey Shayam Tulsian, Shankar Saraf and Gobind Prasad Agarwal and some of their firms were the main source of funds for the project, granted by Kolkata Municipal Corporation to M/S. Martin Burn Limited for rebuilding of the burnt portion of the New Market with additional 97,000 Square Feet for Shops which could be sold or Leased out at their own premium. From this admission it appears that Mr. Kedar Nath Fatehpuria and family were the front men of the aforesaid Radhey Shyam Tulsian and associates.

                Why Radhey Shyam Tulsian and associates need front men as against their own men. There are obvious reasons for this. Reportedly, Radhey Shayam Tulsian and his associate Shankar Saraf and Gobind Ram Agarwal were arrested during the emergency and were kept in Jail for a long period, for violation of FERA.

                There was every possibility that a shrewd politician like that of Shri Jyoti Basu might have advised them to keep some one else as  their front men to keep themselves out of the picture to avoid any eventuality of any sort of political embarrassment, because at that point of time, i.e in 1985, he was not as strong CPI(M) Leader as today, since at that point of time most honest CPI(M) Leader Shri Promod Dasgupta was full control over the party.

                Similarly, for the very same reasons, in the Search Report, disclosures ought to have been shown in the name of Radhey Shyam Tulsian and Party. But, strangely the report is silent about the very fact that how the Income Tax Department have accepted the sale prices of the Shops in the newly  constructed New (Hogg) Market just for a paltry sum of Rs.800/- - 1,000/- per square feet against the then prevailing premium in the area something round Rs.4,000/- to  Rs. Rs.5,000/- per square feet, thus keeping the eyes closed to allow something around Rs.35 Crores to be swindled away into black money. 

                Recently I sought further information under RTI Act, referring a lsit of 32 properties valuing a otal sum of Rupees of few Hundred Crores of Rupees purchased by the Companies of the Land Mafia, being a single member of the said Group, to know whether the Office of the Income Tax (inv.), Kolkata ever enquired in respect of the aforesaid properties, whether any of them were purchased under concealment of actual paymnts, or whether Office of the Appropriate Authority of Income Tax, Kolkata ever enquired in respect of the aforesaid properties, whether any of them were covered within the limit of amount covered/fixed time to ime under Chapter XX-C of the Income Tax Act, 1961. In response to both the application Income Tax Department admitted that no enquiry were conducted in respect of any of the aforesaid properties. It means Income Tax Department is for the protection of the Big Tax Evaders like the aforesaid Group, having Nexus with powerful politicians. In or about 1980 or so, said Kedar Nath Fatehpuria was Estate Manager in Sahu Group, while Mr. Sanjay Kumar Jhunjhunwala was an employee having salary of Rs.300/- per month, now having control over the black money of the few thousand crores of rupees due to Nexus with Shri Jyoti Basu and his desciples.