Disposed

Sapphire Properties Private Limited v. Unique Properties and Securities Pvt.Ltd. and 5 Ors.

Bombay HC23 Apr 2014CAA/35/2014

Case brief

AI extract

What is this about?

The court disposed of a company application filed to permit filing an appeal against tax assessment and demand notices issued to the respondent company. The directors were directed to provide documents in their possession for the appeal. The company application was disposed of by consent.

What did the court decide?

The company application is disposed of by consent; directors directed to provide documents; liberty to applicant to file fresh application for compensation under prayer clause (d).

Sapphire Properties Private Limited Vs Unique Properties and Securities Pvt.Ltd. and 5 Ors. — Bombay HC (2014) — LawSathi Research

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910-CAAL-17-14.DOC

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Shephali

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION COMPANY APPLICATION (L) NO. 17 OF 2014

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IN

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COMPANY APPEAL NO. 16 OF 2013

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Sapphire Properties Private Limited.…Applicants
Versus

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Unique Properties and Securities Pvt. Ltd and 5 …Respondents
others.

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Mr. Aspi Chinoy, Senior Advocate a/w J. P. Sen, Senior Advocate
and M. S. Doctor i/b M/s. Fedral & Rashmikant, for the
Applicants.

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Mr. Simil Purohit a/w Mr. Parag Sharma and Vaibhav Charalwar i/b Udwadia Udesh and Argus Partners, for the Respondents.

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CORAM: G.S. PATEL, J DATED: 23rd April 2014

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PC:-

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1.This Company Application is filed in a Company Appeal that
has been finally heard and in which judgment has been reserved. The
present application is necessitated because assessment orders and
demand notices have been issued by the Income Tax Department
against the 1st respondent-Company. The notice of demand pertains
to the assessment year 2011-12 (previous year 2010-11). The relief
sought is to permit or direct filing of an appeal against these

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1 of 3

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910-CAAL-17-14.DOC

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assessment orders by the 1st respondent-Company, through one
Sharad Patel of M/s. J. K. Khanna & Associates, Chartered
Accountants; and consequentially requiring respondents No. 2 and 3,
directors of the 1st respondent-Company to furnish details,
documents and explanations in relation to the subject matter of those
assessment orders and the demand notice. A prayer is also made to
direct respondents No. 2 and 3 to make available to the applicant the
documents, record and papers enumerated in Exhibit “C” to the
affidavit in support of the company application for the purposes of
this proposed appeal.

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2.Mr. Chinoy, learned Senior Counsel for the applicants, points
out that the consequence of the assessment order and the demand
notice are indeed grave. The assessment order purports to note that
there has been no satisfactory explanation or documentary material
produced before the revenue authorities.

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3.Mr. Purohit, learned counsel for respondents No. 1 to 3 and 6,
contends that there are some documents lying at Malhotra House,
premises of which Mr. Chinoy’s clients are in possession. There is no
difficulty in respondents No. 2 and 3 visiting Malhotra House to look
for such documents as may be necessary. But that cannot mean that
they are not required to make available such of the material as is with
them in response to the assessment orders and a demand notice.
Given that both respondents Nos. 2 and 3 are directors, and that one
or both of them were directors at the relevant time, the necessary
documents, proof and explanations regarding the expenses, purchases
and interest expenditure in question must be reasonably presumed to
be available with them or in their knowledge, power or custody.

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4.In that view of the matter, there will be an order in terms of
prayer clauses (a), (b) and (c) of the company application.

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2 of 3

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910-CAAL-17-14.DOC

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5.The company application is disposed of by consent with this
order, and with liberty to the applicant to file a fresh application, if so
advised, for the relief claimed in prayer clause (d) for compensation.

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6.Mr. Chinoy agrees that for the present, the expenses of filing
and prosecuting the appeal will be borne by his clients, the applicant
in this company application. The applicant shall be at liberty to take
such proceedings as he may be advised for recovery of these costs, at
suitable stage.

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(G. S. PATEL, J.)

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Sapphire Properties Private Limited v. Unique Properties and Securities Pvt.Ltd. and 5 Ors.

Case brief

What is this about?

What did the court decide?

Sapphire Properties Private Limited v. Unique Properties and Securities Pvt.Ltd. and 5 Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

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