GEM GRANITES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN this petition, the petitioner has prayed for issuance of a direction to the authorities of the IT Department to pay Rs. 3,65,17,800 along with interest out of the assets of respondent No. 7 seized/attached by them. It has further prayed for issuance of a direction to them to remit the amount of Rs. 38,03,511.50 recovered from account No. 1030-142816-100 of respondent No. 7 in Times Bank, Faridabad.

(2.) THE petitioner is a registered partnership firm having its office at 78, Cathedral Road, Chennai. It is mainly engaged in granite quarrying, processing and marketing of the same in India and abroad. It is also engaged in the business of textiles, construction, hotel, sugar, software, etc. The chairman of the petitioner-firm, Shri R. Veeramani, is said to have been induced by respondents Nos. 6 and 7 to agree to setting up a residential colony at Gurgaon and persuaded him to remit money in the name of respondent No. 7 and one Dharam Pal for the purpose of obtaining the requisite permission from the office of the Director, Town and Country Planning, Haryana. According to the petitioner, a total sum of Rs. 5,20,04,800 was paid at the instance of respondents Nos. 6 and 7. Out of this, a sum of Rs. 3,65,17,800 was sent in the name of respondent No. 7 and a sum of Rs. 1,54,87,000 was sent in the name of Dharam Pal through bank drafts.

(3.) AFTER the registration of the criminal case against respondents Nos. 6 and 7, the general manager of the petitioner sent a letter dt. 19th July, 1999 (annex. P 8), to the Dy. Director (Investigation), IT Department, Faridariad (respondent No. 3), that the money sent to respondent No. 7 and Dharam Pal did not belong to them and the same should not be treated as their assets and be returned to the Gem group of companies. This was repeated in a communication dt. 27th May, 1999 (Annex. P 9), sent by R. Veeramani, the chairman of the Gem group of companies to respondent No. 3 and letter dt. 10th Feb., 2000 (Annex. P 10), sent by the general manager of the Gem group of companies to respondent No. 3. In October, 2001, the chairman of the Gem group of companies was served with summon (Annex. P 11, dt. 5th Oct., 2001) under s. 131 of the Act to appear as a witness in connection with the proceedings initiated against respondents Nos. 6 and 7 and to produce all books of account from which the amounts were transferred to them. On 18th Oct., 2001, the general manager of the petitioner sent a letter Annex. P 12 to the Dy. CIT (Range- I), Faridabad (respondent No. 5), that the money recovered from respondents Nos. 6 and 7 be returned to the Gem group of companies.