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Zahira files appeal against I-T notice

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Posted: Mar 04, 2008 at 0245 hrs IST

Vadodara, March 3 Zahira Sheikh, prime witness in the Best Bakery Case, filed an appeal against an Income Tax notice asking her to pay close to Rs 38 lakh in taxes, on February 28 in the Vadodara I-T tribunal.

In her appeal, Zahira has stated that the I-T notice against her is flawed, and she has now sought its cancellation.

The I-T department had on February 1 sent a notice to Zahira, based on a Tehelka sting operation, wherein she was accused of taking Rs 18 lakh as payoff for changing her testimony.

Zahira's counsel, Atul Mistry, said the appeal was filed on February 28 and contests the I-T department's claims. “The I-T department based their assessment on the statements of the reporter, who disclosed the information in a sting operation. I-T department rules state the statement of an individual that another person has a certain amount of money is not enough to apply I-T rules,” Mistry said.

He said Zahira never had that kind of money with her to start with and her bank accounts prove it. Mistry also said the IT department has combined the income of Zahira's brother and mother in their assessment.

“The family earned money selling scrap and also received some money from the state government as compensation, which has also been taxed,” Mistry said.

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