Stockbroker’s flat to be auctioned to pay I-T dept

Stockbroker Bhupen Dalal's Altamount Road flat at Chitrakoot building will go under the hammer next week to recover the amount Dalal owes the Income Tax (I-T) department.

Stockbroker Bhupen Dalal's Altamount Road flat at Chitrakoot building will go under the hammer next week to recover the amount Dalal owes the Income Tax (I-T) department. The special court on Friday dismissed Dalal's application seeking a stay on the opening of the auction bids for his home by the custodian of properties.

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Dalal had sought a stay, stating that a division bench of the Bombay High Court had stayed the I-T department's demand last September. The department had sent a demand notice of Rs 1,157 crore for the assessment years 1992-93 and 1993-94 to Dalal, who challenged the decision before the commissioner of appeals of the I-T department.

Dalal also approached the high court challenging the demand raised by the I-T and the court stayed the notice, while asking the commissioner of appeals to decide on the demand expeditiously.

Milind Sathe, counsel for Dalal, argued that in view of the stay by the high court, the auction also needs to be stayed. Let the commissioner of appeals decide the issue of demand notice, said Sathe.

Additional Solicitor General Parag Tripathi and senior advocate Beni Chatterji, arguing for the I-T department, said the commissioner of appeals is likely to decide on notice to Dalal by December 31. However, Tripathi and Chatterji added that there was no need to stay the auction.

Dalal, who was an established broker on the Bombay Stock Exchange (BSE), was accused of diverting funds from banks to cover his losses in the stock market. Dalal is also the promoter of The Bombay Swadeshi Stores now renamed Bombay Stores, which is now run by his sons Milind Dalal and Asim Dalal.