TaxTMI 
TaxTMI 
2019 (2) TMI 882
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....l premises of the appellant where nothing incriminating was recovered; (ii) Issued Summons dated 13.02.2017 directing the appellant to appear on 14.02.2017 for recording his statement; (iii) Conducted search on 18.05.2017 at the official premises of the appellant and seized 59 files, 1 laptop, 3 hard disks and Rs. 6 lakhs. (iv) Issued Summons dated 18.05.2017 directing the appellant to appear on 19.05.2017 for recording of his statement; (v) Arrested the appellant on 22.05.2017 3. The appellant was granted bail on 4.9.2017 by the Special Court (PMLA), New Delhi. 4. It is the case of respondent that on investigation conducted, it was revealed that there was infusion of cash from M/s. Jagat Projects Ltd. into bank accounts of entities controlled by Jain Brothers as reflected in the bank accounts of these entities. The Income Tax assessing officer vide Assessment Order dated 28.03.2013, has recorded a finding that M/s. Jagat Projects Ltd had laundered its unaccounted income through a set of companies controlled by Jain Brothers in the guise of share subscription money at a huge premium to the tune of Rs. 64.70 Crores during the financial year 2008-09, with the help of a prof....
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....owers conferred by clause (a) where the keys thereof are not available; (c) seize any record or property found as a result of such search; (d) place marks of identification on such record or [property, if required or] make or cause to be made extracts or copies therefrom; (e) make a note or an inventory of such record or property; (f) examine on oath any person, who is found to be in possession or control of any record or property, in respect of all matters relevant for the purposes of any investigation under this Act: [Provided that no search shall be conducted unless, in relation to the scheduled offence, a report has been forwarded to a Magistrate under section 157 of the Code of Criminal Procedure, 1973 (2 of 1974), or a complaint has been filed by a person, authorised to investigate the offence mentioned in the Schedule, before a Magistrate or court for taking cognizance of the scheduled offence, as the case may be, or in cases where such report is not required to be forwarded, a similar report of information received or otherwise has been submitted by an officer authorised to investigate a scheduled offence to an officer not below the rank of Additional Secretary to....
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....ion 17 and the officer authorised by the Director in this behalf has, on the basis of material in his possession, reason to believe (the reason for such belief to be recorded by him in writing) that such property is required to be retained for the purposes of adjudication under section 8, such property may, if seized be retained or if frozen, may continue to remain frozen, for a period not exceeding one hundred and eighty days from the day on which such property was seized or frozen, as the case may be. (2) The officer authorized by the Director shall, immediately after he has passed an order for retention or continuation of freezing of the property for purposes of adjudication under section 8, forward a copy of the order along with the material in his possession, referred to in subsection (1), to the Adjudicating Authority, in a sealed cover, in the manner as may be prescribed and such Adjudicating Authority shall keep such order and material for such period as may be prescribed. (3) On the expiry of the period specified in sub-section (1), the property shall be returned to the person from whom such property was seized or whose property was ordered to be frozen unless the Adju....
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....hich is mandated under section 20 of the Act. After the retention of the property, the respondent has not passed an order for retention or confirmation of freezing of the property for purposes of adjudication under section 8 of the Act. Rule 3 of 'The Prevention of Money-laundering (The manner of forwarding a copy of the order of retention of seized property along with the material to the Adjudicating Authority and the period of its retention) Rules, 2005 mandates for the same, which reads as under:- "3. Manner of forwarding the copy of the order of retention of seized property along with the material to the Adjudicating Authority.- (1) The authorized officer shall prepare the index of the copy of the order of retention of the seized property and the material and sign each page of such index of the copy of the order and the material and shall also write a letter while forwarding such index of the copy of the order and the material to the Adjudicating Authority in a sealed envelope. (2) The authorized officer shall place an acknowledgement slip in Form I appended to these rules inside the envelope before sealing it. (3) The authorized officer shall indicate a reference number ....