Concessional penalty for search-disclosed unreconciled jewellery applies where substantive disclosure conditions are met despite omission from origina...
The AT upheld the imposition of penalty under Section 13(1) of FEMA for contravention of Section 6(3)(i) and Regulation 3(a) of the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000. The appellant, having purchased agricultural land in India during 2012-13 after returning to India, was held not to be a person resident in India under Section 2(v)(i) of FEMA, as he did not fulfill the requisite residential criteria in the preceding financial year. The Tribunal confirmed that mens rea is not a prerequisite for imposing penalty under FEMA, which deals with civil obligations. Considering the appellant's lawful foreign earnings and partial pre-deposit of penalty, the AT reduced the penalty from Rs. 8,00,000 to Rs. 2,00,000, directing adjustment against any pre-deposit already made.
The AT upheld the imposition of penalty under Section 13(1) of FEMA for contravention of Section 6(3)(i) and Regulation 3(a) of the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000. The appellant, having purchased agricultural land in India during 2012-13 after returning to India, was held not to be a person resident in India under Section 2(v)(i) of FEMA, as he did not fulfill the requisite residential criteria in the preceding financial year. The Tribunal confirmed that mens rea is not a prerequisite for imposing penalty under FEMA, which deals with civil obligations. Considering the appellant's lawful foreign earnings and partial pre-deposit of penalty, the AT reduced the penalty from Rs. 8,00,000 to Rs. 2,00,000, directing adjustment against any pre-deposit already made.
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