9911796707
TMI Blog2012 (9) TMI 350X X X X Extracts X X X X X X X X Extracts X X X X ..... Government of India under section 235 of the Companies Act, 1956, under which investigation by the Serious Fraud Investigation Office ("SFIO", for short) was ordered. According to the petitioner, after painstaking investigation, the SFIO report concluded that the financial statements of the company showed fictitious sales income and fictitious interest income on non-existent deposits. The SFIO report also found that the previous management paid taxes on fictitious income to convey a false impression that the income was genuine. The key findings in one of SFIO reports are mentioned at page 331 of volume II, which are reproduced hereinbelow : "(a) The former promoters had substantially overstated the revenues and incomes of the comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rch 17, 2010, August 5, 2010, October 27, 2010, and November 8, 2010, stating that income declared by the earlier management in the returns of income had been overstated and tax credit thereon was excessively claimed, as evident from the subsequent restatement of accounts at the instance of the Company Law Board and consequent upon investigation by the SFIO. It was the case of the company before the Central Board of Direct Taxes that the Department had acted on the basis of false claims of payment of taxes made by the previous management by rectifying the assessment and raising tax demands. The case of the petitioner was that, in the circumstances, the overstated income in the specified assessment years should be reduced. Vide the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; (ii) On receipt of the said petition/representation, the Central Board of Direct Taxes will hear the petitioner-company and after hearing, dispose of the case within a period of two weeks from the date of hearing. While disposing of the case, the Central Board of Direct Taxes will give reasons in support of its order ; and (iii) The chairman of the company will file an undertaking by April 18, 2011, with the Registry of the Supreme Court to furnish bank guarantee of the nationalised bank in the sum of Rs. 617 crores on or before April 25, 2011. On filing of such undertaking by the chairman of the company, attachment levied by the Department shall stand lifted. In view of the above order, Shri Harish N. Salve, lea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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