In a setback to stockbroker Bhupen Dalal, an accused in the 1992 securities scam, a special court has allowed his posh flat in upscale Altmount Road area here to be auctioned to recover income tax dues running into crores of rupees. Justice D K Deshmukh of the Bombay High Court yesterday rejected a petition filed by Dalal seeking a stay on the auction of his flat in ‘Chitrakoot’ building.
Dalal had sought the stay on the ground that a High Court division bench in September last year had stayed an Income Tax department’s order asking him to pay tax dues to the tune of Rs 1,157 crore for assessment years 1992-93 and 1993-94.
He argued that the notice of Income Tax was challenged before the Commissioner of Appeal (I-T). A petition had also been filed in the High Court which had stayed the notice.