https://www.taxtmi.com/caselaws?id=457490 Indian currency paid in India as consideration for arranging foreign exchange abroad may establish contravention of foreign exchange restrictions when seized documents, witness statements, and surrounding circumstances form a consistent evidentiary pattern. A claim that the transfers were gifts was rejected where the facts pointed to payment for remittance services, and the person with special knowledge failed to explain the transaction, justifying adverse inference. The immunity scheme under the 1991 Act was held not to override independent foreign exchange liability where the transactions did not qualify for protection. Penalty was treated separately on quantum and was reduced as excessive, with prior payment to be adjusted against the balance. en-us Mon, 14 Jul 2008 00:00:00 +0530 Fri, 20 Sep 2024 17:12:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=457490 Indian currency paid in India as consideration for arranging foreign exchange abroad may establish contravention of foreign exchange restrictions when seized documents, witness statements, and surrounding circumstances form a consistent evidentiary pattern. A claim that the transfers were gifts was rejected where the facts pointed to payment for remittance services, and the person with special knowledge failed to explain the transaction, justifying adverse inference. The immunity scheme under the 1991 Act was held not to override independent foreign exchange liability where the transactions did not qualify for protection. Penalty was treated separately on quantum and was reduced as excessive, with prior payment to be adjusted against the balance. Case-Laws FEMA Mon, 14 Jul 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=457490