TaxTMI 
TaxTMI 
2018 (6) TMI 388
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....against Shri Pandari S/o Sri Mallappa Dodla, residing 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....
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....ession of the facts regarding the cost of construction. He stated that source for construction of shops and amount 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 purcha....
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....come 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. (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 vi....
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....ddy pally Kodangal Taluk, Mahaboobnagar, Andhra Pradesh , measuring 2 acres 20 guntas in his first son Sri. Mallikarjun name from Balaigoud 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 i....
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.... sy. No 114/1, Hosur Village, Chittapur taluk, Gulbarga District vide Document No 772/2004-05 dated 08-06-2004 in her name for Rs. 2,96,000 from Rudramuni 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 s....
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....lburgi for an amount of Rs. 4,55,232. (2) one Mahindra Tractor bearing Registration o KA-32-/T-3687/3688 dated 17-06-2003 having Engine No ENWZ 1234 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 in....
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....pt practice and he has not faced any inquiry or any disciplinary proceeding pending against him. PW.18 - Tammaraya the Investigating Officer who prepared the crucial documents 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 disc....
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....hased in the name of Mallikarjun son of Nirmala Rs. 1,02,500/- xi). Amount held in S/B Kalaburgi. A/c at Bank of India, Rs. 1,012/- xii). Maruti Swift car bearing no. KA-32-7147 purchased by Nirmala Rs. 5,88,701/- xiii). Scooty pep bearing No. KA-32-S-1747 purchased by Nirmala in the name of her daughter Anita. Rs. 31,970/- xiv). Nirmala purchased Mahindra 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 ....
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....car bearing no. KA- 32-M-7147 Rs. 4,55,232/- Total Rs. 62,48,502/- Grand total of Rs. 81,26,554/-+Rs. 62,48,502= Rs. 1,43,75,056/- ANNEXURE-D a) Total assets held by the accused as determined by the Court Rs.77,34,253/- b) Total expenditure incurred as determined by the Court Rs.37, 64,996/- Total: Rs.1,14,99,249/- c) Known sources of income of the accused as determined by the court Rs.1,43,75,056/- d) Surplus known sources of income Rs.28,75,807/- "65. On perusal of the entire evidence adduced by the prosecution as discussed by me supra, the prosecution has failed to produce cogent, corroborative and satisfactory evidence to prove the charges levelled against the accused. The evidence produced by the prosecution is insufficient to hold 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 Dodl....
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....he offence on the basis of allegation made. On the basis of same allegation prosecution complaint under section 45 of the Act is pending and once the appellant has been acquitted in the schedule offence, the prosecution complaint would not lie as any accused cannot be tried twice for the same offence. It is submitted that after recording the evidence of the prosecution witnesses for the offence, the appellant/alleged accused was acquitted by the Special Court. No appeal has been filed as informed by the parties. When the judgement was passed in favour of the appellant in 2017 by the Court, the prosecution complaint under Section 45 of PMLA for the same allegations was already filed in 2016. In the prosecution complaint, there is neither fresh allegations nor additional evidence under the PMLA. 16. As far as the above arguments addressed on the aspect of Double Jeopardy are concerned, the prosecution complaint under section 45 of 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 Specia....