TaxTMI 
TaxTMI 
2018 (1) TMI 1222
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....e paper chit containing certain calculations and an empty envelope were seized as per Mahazar. The Appellant noticee was then confronted with the seized paper chit and statements under Section 37 of FEMA were recorded. 3. The relevant portion of the Impugned Order reproduced as below: "When confronted with the seized paper chit containing certain calculations indication some amounts of Rs. 5000/- and Rs. 10,000/-, which the appellant claimed they were written by his wife and when questioned about the name of Faizal in the chit, the appellant stated that, he is his brother employed in Saudi Arabia. He entrusted the said money in Saudi Riyal (SRs) for encashment with his firm K.N. Money Exchange. "When the Enforcement Authorities specif....
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....d Rs. 10,00,000/- in November, 2007 and Rs. 15,00,000/- in December, 2007 from unknown persons and distributed this amount to two persons and distributed this amount to two persons as per the directions of Sh. Rabbu. The Noticee has also admitted that he had sent one Basheer of Koduvallu on instructions of this Rabbu to collect Rs. 10,00,000/- from one Sh. Ratan Das of Bangalore in December, 2007, but could not receive the amount as Basheer was apprehended by the Directorate of Enforcement, Bangalore". 6. It is true that the said statement was retracted by the Appellant which was vide his letter dated 29.02.2008 addressed to the Adjudicating Authority which was then rejected since it was devoid of any merit. However, reliance can also be ....
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.... statement made under oath cannot help the appellant to get relief from the consequences of violations of an act." 8. The Special Director (appeals) has allowed the appeal and amount of Rs. 4 lac. was imposed as penalty. It is the case of the appellant that he is facing financial crisis and is not able to pay the said amount. From the respondent side, no material is placed to show that he is in position to pay the said amount. The proceedings are pending for the last ten years. 9. After small argument, learned counsel appearing on behalf of appellant upon instruction has informed that her client is agreeable to deposit Rs. 2 lac with the respondent despite very bad financial condition, otherwise he is not in a condition to pay Rs. 4 lac.....