TaxTMI 
TaxTMI 
1991 (5) TMI 49
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....ection 2(2)(b) of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (hereafter "the Act"). The Competent Authority issued notice dated January 18, 1989, under section 6(1) of the Act with respect to the following two properties : (1) House property consisting of land measuring 7 cents and building thereon at door No. 8/840 Elanjikal Parambil, T. D. Estate, Cochin Survey No. 499/ 1, Mattancherry, Cochin-2, and (2) A Bullet Motorcycle (1986 Model) with registration No. KBE3954. After completion of investigation and trial, the Competent Authority, vide order dated December 14, 1990, allowed the benefit of section 9 of the Act to the appellant and directed that he may pay a fine of Rs. 28,422 by January....
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....which issued a certificate to that effect. The motor cycle was hypothecated with the bank. The Competent Authority has accepted the source for Rs. 15,000 obtained as loan from the bank. The appellant adduced no evidence to prove the legal source for the balance of Rs. 4,935. The Competent Authority has clubbed the two amounts spent for acquiring the house and motor cycle. The appellant spent Rs. 33,750 for purchasing the house and Rs. 19,935 for the motor cycle. The total comes to Rs. 53,685. According to the finding of the Competent Authority, the appellant established the legal sources for Rs. 15,000 which he raised as loan from the bank for the purchase of the house and of an equal amount for the purchase of motor cycle. The total of ....
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....ies held by any person to whom this Act applies, either by himself or through any other person on his behalf, his known sources of income, earnings or assets, and any other information or material available to it as a result of action taken under section 18 or otherwise, the Competent Authority has reason to believe (the reasons for such belief to be recorded in writing) that all or any of such properties are illegally acquired properties, it may serve notice upon such person (hereinafter referred to as the person affected) calling upon him within such time as may be specified in the notice, which shall not be ordinarily less than thirty days, to indicate the sources of his income, earnings or assets, out of which or by means of which he ha....
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....fth times the value of such part. Explanation. -For the purposes of this sub-section, the value of any part of income, earnings or assets, with which any property has been acquired, shall be, (a) in the case of any part of income or earnings, the amount of such part of income or earnings ; (b) in the case of any part of assets, the proportionate part of the full value of the consideration for the acquisition of such assets. (2) Before making an order imposing a fine under sub-section (1), the person affected shall be given a reasonable opportunity of being heard. (3) Where the person affected pays the fine due under sub-section (1), within such time as may be allowed in that behalf, the Competent Authority may, by order, revoke ....