TaxTMI 
TaxTMI 
2019 (4) TMI 1085
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....ses of the Appellant. (ii) The Adjudicating Authority by way of the impugned order has passed directions for the retention of the records seized from the residential premises of the Appellant on 18.02.2017. These records contain the following material:- i. Indian Currency amounting to Rs. 4,25,000/- ii. Hard Disk Drive [HDD]; and iii. Documents [i.e. receipt for Rs. 1,32,00,000/- and a possession letter] pertaining to the office premises of the appellant. 3. It is stated on behalf of appellant that the records seized by the respondent have no relation to the case set up by the respondent against the appellant due to the following reasons:- i. The currency and the Hard Drive do not belong to the appellant. The currency is that of the Chartered Accountancy firm of the father of the appellant [ i.e. R.C. Kapoor] and the Hard Drive is that of the appellant's daughter. ii. The documents pertaining to the office premises of the appellant pertain to a period of 2015 which is much prior to the first alleged meeting of the appellant with Sanjay Bhandari. 4. Admittedly, an investigation in this case was initiated on the bas....
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....eipt for Rs. 1,32,00,000/- and the possession letter with respect to the office premises of the appellant were duly reflected in the books of accounts and the asset was acquired in March, 2015 [ i.e. much prior to the point in time the Respondent alleges the Appellant to have met Sanjay Bhandari]. Documents substantiating this fact were also filed. 7. On 02.05.2017, the respondent filed a Rejoinder in response to the reply of the appellant. In Rejoinder, the respondent raised contention that the appellant in his statement dated 20.03.2017 had stated that he had received an amount of Rs. 5.20 lakhs as part of his fees for his legal advice to Sanjay Bhandari. The case of the appellant is that the same is not correct. The said amount had been received by R.C. Kapoor & Co. for professional services provided to M/s. Khanna & Annadnam. Moreover, this assertion was not made by the respondent in its original Application under Section 17(4) of the Act. In the Rejoinder, the respondent did not deny that the Currency of Rs. 4,25,000/- was seized from the almirah in the bedroom of Mr. R.C. Kapoor on the Ground Floor or that the appellant resides on the First Floor. The respondent a....
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.... 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 the Government of India or equivalent being head of the office or Ministry or Department or Unit, as the case may be, or any other officer who may be authorised by the Central Government, by notification, for this purpose.] [(1A) Where it is not practicable to seize such record or property, the officer authorised under subsection (1), may make an order to freeze such property whereupon the property shall not be transferred or otherwise dealt with, except with the prior permission of the officer making such order, and a copy of such order shall be served on the person concerned: Provided that if, at any time before its confiscation under sub-section (5) or sub-section (7) of Section 8 or Section 58B or sub-Section (2A) of Section ....
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.... Schedule, before a Magistrate or court for taking cognizance of the scheduled offence, as the case may be.] (2) The authority, who has been authorised under sub-section (1) shall, immediately after search and seizure, forward a copy of the reasons so recorded along with material in his possession, referred to in that sub-section, to the Adjudicating Authority in a sealed envelope, in the manner, as may be prescribed and such Adjudicating Authority shall keep such reasons and material for such period, as may be prescribed. (3) Where an authority is about to search any person, he shall, if such person so requires, take such person within twenty-four hours to the nearest gazetted officer, superior in rank to him, or a Magistrate: Provided that the period of twenty-four hours shall exclude the time necessary for the journey undertaken to take such person to the nearest gazetted officer, superior in rank to him, or Magistrate's Court. (4) If the requisition under sub-section (3) is made, the authority shall not detain the person for more than twenty-four hours prior to taking him before the Gazetted Officer superior in rank to him, or the Magistr....
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....ossession, referred to in sub-section (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 Adjudicating Authority permits retention or continuation of freezing of such property beyond the said period. 13. Section 21 of PMLA reads as under:- "21. Retention of records. - (1) Where any records have been seized, under section 17 or section 18 or frozen under sub-section (1A) of section 17 and the Investigating Officer or any other officer authorised by the Director in this behalf has reason to believe that any of such records are required to be retained for any inquiry under this Act, such records 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 records were seized or frozen, as the case may be. (2) The person, f....
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.... are kept, who is also empowered to break open the lock of any door, box, locker, safe, almirah or other receptacle where the keys thereof are not available and seize any record or property found as a result of such search, place marks of identification on such record or make or cause to be made extracts or copies therefrom; make a note of an inventory or such record or property and to 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. However, the said action is sustainable subject to conditions stipulated in the proviso of Section 17(1) of the Act, which says that the search and seizure shall not 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 schedule offence, as the case may be, or  in cases where s....