HC to deliver order in LIL tax evasion case next week

Mumbai, Nov 6 (UNI) The Bombay High Court today reserved its order in an alleged tax evasion case worth Rs 2.39 crore by Lotus Investments Limited, a company owned by Amitabh and Ajitabh Bachchan.

A division bench comprising justices H L Gokhale and J P Devadhar will pass orders next week in the matter.

The LIL, meanwhile, has challenged the notice issued by Income Tax assistant commissioner G Y Wagh for conducting regular assessment of their accounts from 1989 to date and a petition challenging the block assessment from 1989-2000 is pending before the Income-Tax Tribunal.

Adv Jehangir Mistry, counsel for LIL, contended before the court that the Income Tax notice was not in accordance to law and the accounts could not be re-opened for regular assessment.

Elaborating on the facts of the case, Adv Beni Chatterji, representing the Income Tax department, told UNI that LIL had taken a loan of Rs five crore from Vysya Bank in 1994 for business purposes.

The LIL had invested the amount in shares of the bank and the interest on the sum, amounting to Rs 2.39 crore, was not entitled to tax exemption. It was further contended before the court that LIL's claims that it had purchased refrigerators and office equipments with the loan money was 'false'. Besides, it was alleged that the company had purchased the shares of Vyasa bank through front-end companies that actually did not exist.

UNI ARM MAZ SAM DB2012