TaxTMI 
TaxTMI 
2018 (6) TMI 388
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.... at House No. 1-142, Lakshmi Nivas Dodla House, Bijapur-Hyderabad Main Road, Near Tasildar Office, Gurmitkal-585214, Yadgiri District, presently working as a Manager, Karnataka Food and Civil Supplies Corporation, District Manager's Office, Yadgir-585202. (herein after referred to as Accused No. 1) Karnataka Lokayukta Authority, Gulbarga vide FIR in crime NO. 16/2009 dated 22-10-2009 (transfer of FIR from Raichur to Gulbarga on jurisdictional ground) and there after conducted searches and recovered incriminating documents pertaining to the properties of Shri Pandari. 3. On completion of the Investigation, the Lokayukta Authorities filed Charge Sheet dated 10-02-2014, in the District & Sessions (Special) Court, Gulbarga, against the said officer, for an alleged offence involving an amount of Rs. 86,40,215/- under the Sections 13(1)(e ) read with 13(2) of the Prevention of Corruption Act, 1988 as detailed below:- 1 Value of Assets of the accused at the commencement of Check period 21-10- 1985 to 22-09-2009 Nil 2 Value of Assets required by the accused during Check Period Rs. 1,14,58,544/- 3 Total Rs. 1,14,58,544/- Net Value of Assets Rs. 1,14,58,544/- 3 ....
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....ount paid to brother and for purchase of site in the name of brother were from salary saving and agricultural Income and have no details of the amount spent from salary and agricultural income separately. The details of land holding from which the agricultural products raised are made. Receipt for the sale of agricultural products and the statement of Agriculture income is made and submitted. From the statement of agricultural income it has come to notice that agriculture income was shown without expenditure on agriculture. The agricultural income was not declared to the income tax authorities. The agricultural income derived was not co-related to the agricultural land in his name. Thus his claim of agricultural income merits rejection. (b) He purchased a Plot No 13 measuring 40X 60 in Sy. No 43/4 -5, Azad Colony, Badepur , Kalburgi in the name of his wife Smt. Nirmala vide sale Deed No 4009/1994-1995 dated 11/01/1995 for Rs. 10,000 paid by cash from Shri Kadri and stated that his wife out of her own income built house in 1996. He also stated that source for purchase was from salary savings and agricultural Income and have no details of the amount spent from salary and agricultur....
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....gricultural products and the statement of Agriculture income is made and submitted. From the statement of agricultural income it has come to notice that agriculture income was shown without expenditure on agriculture. The agricultural income was not declared to the Income tax authorities. The agricultural income derived was not co-related to the agricultural land in his name. Thus his claim of agricultural income merits rejection. (d) He purchased a vacant site bearing No 10 measuring 3875 sq. Feet in sy. No 65 of Jayanagar Colony, Badepur Village, Kalburgi vide document No 2071 /1999-2000 dated 02-07- 1999 from Dr. Asha Gangani for Rs. 1,52,000 and paid by cash and after constructed a residential house at the cost of Rs. 7,75,000 in the plot bytaking a Housing loan of Rs. 7,00,000 from State Bank of Hyderabad, Sangameswhar branch, Kalburgi on 10-06-2004 and repaid the loan amount from his agricultural income and salary savings and further gifted this property to his second wife Smt. Arathi who in turn sold the property to Sri Somasehekar, Gulbarga vide document No 4607/2007-08 dated 21-08-2007 for Rs. 9,02,000. The cost of the house was estimated at Rs. 13, 91,235/- as per the E....
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....d 252/2001 02-02-2001 registered in SRO-Kodangal Rs. 23,500 (Rs 29,350 including registration charges) by cash. (5) Agricultural land in sy. No 108, Hosur, Chittapur Taluk, Gulbarga District measuring 2 acres in the name of his first son Sri Mallikarjun from Sri Mallareddy vide document No 988/2006-07 dated 02-06-2006 registered in SRO- Chitapur for Rs. 51,000 (Rs 56,215 including registration charges) by cash. He stated that source for purchase, was from salary savings and agricultural Income and have no details of the amount spent from salary and agricultural income separately. The details of land holding from which the agricultural products raised are made. Receipt for the sale of agricultural products and the statement of Agriculture income was made and submitted. From the statement of agricultural income it has come to notice that agriculture income was shown without expenditure on agriculture. The agricultural income was not declared to the Income tax authorities. The agricultural income derived was not co-related to the agricultural land in his name. There was no proof made available for earning agricultural income for the years 1988-89 to 1995-96 as the official claimed. Th....
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....dramuni paid by cash (4) Agricultural land measuring 4 acres in sy. No 100/A, Hosur Village, Chittapur taluk, Gulbarga District 1 vide Document No 732/2004-05 dated 08- 06-2004 in her name for Rs. 1,04,000 from Sabanna paid by cash (5) Agricultural land measuring 2 acres and 2 guntas in sy. No 341 K. Chitapur Village, Chittapur taluk, Gulbarga District vide Document No 2510/2004-05 dated 03-01-2005 in the name of her son Sri. Mallikarjun for Rs. 1. 02,500 from Chandrasekhar Deshmuk paid by cash (6) Agricultural land measuring 4 acres and 36 guntas in sy. No 623, Khatha No 1779 situated in Srinivasa Saradagi Village, Chittapur taluk, Gulbarga District vide Document No 3010/2005-06 dated 03- 08-2005 for Rs. 66500 from (a) Subbash (b) Gurnath and (c) Ravi paid by cash and She also stated that out of 4 acres and 36 guntas she sold 1 acre and 38 guntas for Rs. 66,500 to Gulam rasool registered in Sub-Registrar, Gulbarga vide Registration sale deed bearing No 9139/2006-07 dated 19-01- 2007.(7) Agricultural land measuring 6 acres 19 guntas in sy. No 15 Hosur Village, Chittapur taluk, Gulbarga District vide Document No 953/2006-07 dated 02-06-2006 in her name for Rs. 164000 from Kareppa pa....
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....for Rs. 2,50,000 (3) she further purchased one Mahindra Tractor bearing Registration o KA-32-/T-A-1028 dated 05-08-2009 having Engine No S325-1003746 and Chasis No 495421 for Rs. 4,86,683 by availing loan from SBH Chittapur for an amount of Rs. 4,00,000. She stated that the source for purchase and for repayment of loan was from her agricultural income. However there were no documents to prove her claim of income. She also stated that she has not filed any Income tax returns for the years 1995-96 to 2001-02 depicting either agricultural income or tailoring income. 8. The provisional attachment was confirmed by the impugned order. Thereafter, the above appeals were filed under section-26 of the Prevention of Money Laundering Act, 2002. The reply was also filed. The prosecution complaint is pending as informed. 9. During the pendency of appeals by the Judgement dated 21.4.2017, the Special Judge has acquitted the accused for the offences under section 13(i) (e ) ready with section 13(2) of Prevention of Corruption Act,1988. It is informed that no appeal was filed. The Judgement attains finality which was passed after recording the evidence. The relevant para 60 - 65 are reproduced h....
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....s about fixing the value of the assets and expenditure of the accused has clearly admitted in his evidence that accused possessing the ancestral properties through which he has received agricultural income. The income received from the agriculture and other sources have been clearly reflected in his assets and liability statements and also IT returns submitted to the Government. " "63. In the instant case, every single amount received by the accused has been proved on record through the testimony of witnesses and it is also supported by contemporaneous documents and intimations to the Government. It is not the case of the prosecution that the receipts so projected were bogus or were part of a calculated device. That fact that these amounts were actually received from the sources so named were satisfactorily proved by the accused. Furthermore, these amounts and assets are well reflected in the assets and liability statements filed by the accused." "64. Insofar as other assets and income as disclosed by the prosecution are not seriously disputed by the accused. After analyzing each and every items as stated supra, upon considering the oral and documentary evidence placed on recor....
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....ra Jeep bearing No. KA-32-M-2546 Rs. 2,50,000/- xv). Difference of valuation of the house bearing No. 2/909/65/10 situated at Jayanagar sold by second wife Arati to Tengli Jewelers. Rs. 4,89,235/- xvi). Bullet motorcycle standing in the name of Rajendra Handral (not a family member) Rs. 15,000/- Total Rs. 37,24,291/- (Rs. 1,14,58,544/-(-)Rs. 37,24,291/-)= Rs. 77,34,253/- ANNEXURE-B Expenditure incurred by the accused during check period as per the charge sheet and items of expenditure ordered to be deleted as determined by the Court. Expenditure incurred by the accused during the check period as per the charge sheet Rs.53,08,325/- The items liable to be deleted a) After divorce Nirmala, first wife of the accused paid LIC premiums of the policies held by her from 1999 to 2009 which are reported in IT returns from 1999 to 2009 Rs. 2,13,220/- b) Income Tax paid by her when she started residing separately after divorce. Rs. 7,550/- c) Registration expenditure paid by Nirmala for registration of plot Nos. 103 to 105 of Gurumitkal Rs. 20,035/- d) Total registration charges pa....
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....old hat the accused has committed the offence punishable under section 13(1) (e ) R/w section 13(2) of the Prevention of Corruption Act. Accordingly, I answer the above point No. 2 in the negative. In the result, I proceed to pass the fol owing final order: ORDER Accused - Pandari S/o Mallappa Dodla is found not guilty of the offence under section 13(1) (e) read with Section 13(2) of the Prevention of Corruption Act, 1988. Accordingly, exercising the power under Section 235(1) of Cr.P.C. accused is acquitted for the offence under Section 13(1)(e) read with Section 13(2) of the Prevention of Corruption Act, 1988." 10. By the said Order dated 27.04.2017 passed by the Special Court, the charge sheet in the case of appellant struck down and set aside by the Special Court (Trial Court), the order passed by the Adjudicating Authority confirming the Provisional Attachment Order has no any validity/legal support in eyes of law and void ab initio. 11. This fact was brought to the notice of this Tribunal. Copy of the Judgement was also filed. It was argued that once the appellant was acquitted from the schedule offence and no appeal was filed, the attached properties are liable to be r....
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....the Act is already pending before the Special Court. All these arguments can be taken by the appellant, if so required before the appropriate court. 17. However, I am of the considered view that once the main appellant has been acquitted by the Special Court under the Schedule Offence after the trial and no appeal has been filed by the State against the said Judgement (as informed by the parties), the appeal is liable to be allowed. The complaint under schedule offence was decided on merit after recording the evidence. The FIR was filed in 2009 as well as charge sheet have been quashed by the Special Court. 18. It has also been seen from the Impugned Order that the reply/documents/materials and evidence filed by the appellant have not been considered nor the statement made by the appellants under section 50 of the Act. 19. The Provisional Attachment Order has not discussed the source of funds available with the accused. It was merely assumed that the accused/appellant had not any savings despite of submitting the material and documents and also from his spouse, son Rakesh and Avinash. 20. The Adjudicating Authority ought to have complied with all the principles of duly conducti....