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2023 (7) TMI 1476
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....down and bringing back undisclosed foreign assets and income which legitimately belongs to the nation. In the Budget Speech of 2015, the Central Government disclosed its intention to bring enactment to address the black money parked outside the nation. 2. The Apex Court of India has also expressed concern over the problem of black money. The Special Investigation Team constituted by the Central Government to implement the judgment of the Supreme Court expressed its view and suggested the measures to be taken to curb the menace of black money. The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (in short "the Act of 2015") was brought to address serious problem of black money affecting the economy of the country erased by unused at the cost of the development of the Country. 3. The present Appeal is an outcome of an action taken by the Appellant Department in pursuance to the Act of 2015 and the Prevention of Money-Laundering Act, 2002 (in short "the Act of 2002"). The Appeal has been preferred by the Department to challenge the order of the Adjudicating Authority refusing to confirm the Provisional Attachment Order. The Appellant Department....
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....espondent No. 11 as a beneficial owner of corporation Shamlan Gross-I Inc, incorporated under the laws of Republic of Panama with an authorized capital of 500 common shares. In the statement recorded u/s 132 (4) of I.T. Act, of Respondent No. 11, it was admitted that the property Flat No. 6, Grosvenor Hill Court, Bourdon Street, London was bought in 2013 for a consideration of Rs. 10 Crore. All the 500 shares of Panama based entity were purchased by investing Rs. 10 Crore in 2013 to acquire the flat through two bearer certificates which Respondent No. 11 had kept with his attorney in London namely Patricia Bouchara and Associate, 117 A, Mounster Lane, London. Admittedly the source of acquisition of the property and other expenses were out of the funds generated by Respondent No. 11 through Dubai based entity. (iii) Property No. 12, Ellerton House, Bryanston Square, London - Page No. 54-56 of Annexure A-6 and pages 139-141 of Annexure A-3 found and seized during the search action at his office premises 12 A, Panchsheel Enclave, new Delhi were copies of emails sent to his email ID at [email protected] and enclosed the sales memo for 12, Ellerton House, Bryanston Squ....
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....and seized which revealed that Respondent No. 11 was the beneficial owner of an entity incorporated in Panama called Shamlan Gross. Respondent No. 11 also admitted that two bearer share certificates of this foreign entity were kept in London with his attorney Patricia Bouchar and Associates. (viii) Petro Global Technologies FZC - The seized copies of the emails extracts revealed his interest in an entity called Petro Global Technologies FZC, incorporated in UAE. The information gathered revealed that he was one of the owners of this entity having 33.3% shareholding. (ix) MVD Global - Pages 17-23 of annexure A-5 found and seized as part of copies of email extracts, included a mail from Barclays dated 9-6-2011, to him regarding outstanding fee for MVD Global Ltd evidencing his interest in this entity. (x) As per the documents recovered and seized by Income Tax authority on 27-04-2016 and Statement of Respondent No. 11, recorded on 29-30/04/2016 by Income-tax authority, it has revealed that Respondent No. 11 was either account holder or authorized signatory of the following foreign bank accounts: A. Bank Accounts in the name of Santech International....
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....spondent Sanjay Bhandari to alienate his foreign assets and offshore entities into a trust in Dubai. 8. The statement of Shri Sanjay Bhandari was recorded on oath by the Income Tax Department on 29/30-04-2016, 25-5-2016, 01-7-2016 and 5-7-2016 under section 132(4) and 131 of the Income-tax Act, 1961 (in short the "Act of 1961"). The Respondent Sanjay Bhandari admitted interests in the entities incorporated outside India i.e. Santech International FZE, Dubai, Offset India Solutions, UAE, Shamlan Gross-1 Inc, Panama , Serra Dues Technologies FZC, RAK, UAE, MVD Global, Petro Global Technologies FZE, UAE. The income accrued from those entities were not reflected in the Income-tax Return and it was further admitted that he owned three properties in Dubai and London and had not disclosed in the Income-tax Returns. 9. The Income Tax Department, New Delhi vide its letter dated 05-4-2017 sent copies of Panchnama prepared on search at various premises of Sanjay Bhandari, Ashok Shankar and Shri Sanjeev Kapoor. The Panchnama dated 29-4-2016 and 28-6-2016 was prepared even on a search at residential premises of Shri Ashok Shankar at New Delhi where foreign currency to the tune of Rs. 9,95....
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.... Authority below has failed to refer to the relevant facts while considering irrelevant facts to draw erroneous conclusion and recorded perverse finding resulted in refusal to confirm the Provisional Attachment Order. The Adjudicating Authority even failed to take proper interpretation of the provisions of law applicable on the subject and at the same time ignored relevant provisions, thus impugned order has been challenged by the Appellant. 16. It was submitted that the Enforcement Directorate received information from the Income-tax Department alongwith the material to show various foreign assets and income in the hands of Shri Sanjay Bhandari and his associates. The foreign assets were consist of bank account, movable and immovable properties not disclosed in the Income-tax Return. The facts aforesaid were admitted by Shri Sanjay Bhandari in his statement recorded by Income-tax Authority. The search and seizure was conducted not only at different places belongings to Shri Sanjay Bhandari but person connected with him which includes Shri Sanjeev Kapoor. 17. The material seized during the search and the statements recorded from time to time were sent to the Appellant Departm....
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....ed Counsel for the Respondent. He has taken additional grounds to endorse the order passed by the Adjudicating Authority. The written argument have been submitted by both the parties and thereby we would be dealing with each issue raised by the parties and taken up by the Adjudicating Authority but before that we would refer relevant provisions with interpretation. (1) The Offence under section 51of Black money Act, 2015 20. The Scheduled offence involved in this case is under section 51 of Black money Act of 2015 thus it would be relevant to quote the said provision:- "Section 51 Punishment for willful attempt to evade tax - (1) If a person, being a resident other than not ordinarily resident in India within the meaning of clause (6) of section 6 of the Income-tax Act, willfully attempts in any manner whatsoever to evade any tax, penalty or interest chargeable or imposable under this Act, he shall be punishable with rigorous imprisonment for a term which shall not be less than three years but which may extend to ten years and with fine. (2) If a person willfully attempts in any manner whatsoever to evade the payment of any tax, penalty or interest ....
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....r market value of an asset (including financial interest in any entity) determined in such manner as may be prescribed." Section 4 of total undisclosed foreign income and asset - (1) Subject to the provisions of this Act, the total undisclosed foreign income and asset of any previous year of an assessee shall be,- (a) the income from a source located outside India, which has not been disclosed in the return of income furnished within the time specified in Explanation 2 to sub-section (1) or under sub-section (4) or sub-section (5) of section 139 of the Income-tax Act; (b) the income, from a source located outside India, in respect of which a return is required to be furnished under section 139 of the Income-tax Act but no return of income has been furnished within the time specified in Explanation 2 to sub-section (1) or under sub-section (4) or sub-section (5) of section 139 of the said Act; and (c) the value of an undisclosed asset located outside India. (2) Notwithstanding anything contained in sub-section (1), any variation made in the income from a source outside India in the assessment or reassessment of the total income o....
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.... thus:-. "Part C An offence which is the offence of cross border implications and is specified in, (1) Part A; or 4[***] (3) the offences against property under Chapter XVII of the Indian Penal Code.] ^5[(4) The offence of willful attempt to evade any tax, penalty or interest referred to in Section 51 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.]" 26. Part C of Schedule quoted above makes a reference to "offence of cross border implication". According to the Respondent, to fall under Part C, an offence should be of "cross border implication" which is not the case in hand. To make out a case of "cross border implication" there has to be transfer of property out of India. According to the Respondent, there is no transfer of proceeds of crime outside India to fall in the definition of "offence of cross border implication". According to them Appellant could not produce material to prove the aforesaid. The foreign assets alongwith entities in Dubai were existing prior to coming into force the Black Money Act of 2015 without its transfer thus a case of "cross border implication" would ....
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....ferred to a place outside of India or an attempt for it. It can be vice versa. 30. The definition given under section 2(1)(ra) cannot be applied for an offence under section 51 of the Black Money Act of 2015. The offence under the aforesaid provision would be made out on evasion of tax, penalty or interest chargeable or imposable under the Black Money Act of 2015. It is in reference to foreign income and assets. The offence under section 51 of the Black Money Act, 2015 would be made out when tax chargeable under the said Act is evaded. The evasion of tax cannot have an element of transfer as it is a liability of tax not disclosed and paid. The evasion of tax is an amount not paid by the assessee thus question of its transfer cannot arise. The interpretation given by the Respondent and accepted by the Adjudicating Authority would make item No. 4 of 'C' of Schedule redundant and in no case, an offence under section 51 of the Black Money Act of 2015 would be made out. It is the reason that evaded tax cannot have an element of transfer out of India. It is obligatory on the Courts to take proper interpretation of the provision which does not make it to be redundant. Thus, ite....
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....% on the premia under S.44(1)(b) though the policies in force on 14.12.49 aggregated only less than the prescribed minimum value of Rs. 50,000/-. During such consideration, it was held that an insurance agent who had served the insurer exclusively for at least ten years would be under a disability as against an insurance agent who had worked only between five years and ten years in that, he could not claim the percentage on the renewal premium, if he directly or indirectly solicited or procured insurance business for any other person after he ceased to be an insurance agent for the particular company. The said decision deals with the clauses under the Insurance Act. It is to be noted that section 44 of the Act was made applicable to LIC as per GSR 734 dated 23-8-1958 published in the Gazette of India dated 23-8-1958 and the same was amended as per GSR 262(E) dated 24-7-1972 published in the Gazette of India dated 24-7-1972 The pointed question involved in this case, as mentioned hereinbefore, is as to whether the second limb of clause (c) of the proviso to Section 44(1) of the Act is one which would apply to the other different clauses thereunder viz., clauses (a), (b), (bb) and (b....
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....ken that such unusual approach was made with a purpose to ensure that the prohibition on cessation of payments of renewal commission to those former LIC agents who are made eligible for and entitled to renewal commission for the policies effected through them, even after cessation of such agency under all the clauses, would and should satisfy the condition enjoined under the second limb of clause (c) of the proviso, to avoid cessation of payment of such commission. In strict sense, in such circumstances, it cannot be said that it is purely a part of clause (c) alone having applicability in the cases of persons falling under the first limb prohibiting payment to them if they directly or indirectly solicited or procured insurance business for any other person. The purpose revealed from the second limb of clause (c) of the proviso to Section 44(1) of the Act applicable to LIC, cannot brook any construction other than that the said condition is intended to act as an embargo applicable to all the clauses carrying eligibility criteria for renewal commission on cessation of agency and that it is one which would disqualify the contravenors who directly or indirectly solicit or procure insu....
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.... to section 44(1) of the Act as applicable to LIC. In the light of the discussions as above, we are inclined to answer the referred question in the affirmative. In other words, according to us, the second limb of clause (c) of the proviso to section 44(1) of the Act is one which would apply to the other different clauses thereunder applicable to LIC viz., clauses (a), (b), (bb) and (bbb) introduced to that proviso so as to import the said embargo even in respect of persons falling under clauses (a) to (bbb)." 32. In view of the aforesaid, the Scheduled offence under item No. 4 of part (c) is not to be governed the definition of "cross border implication" and accordingly we hold that the interpretation of the provision taken by the Adjudicating Authority is after mis-reading of the provision, thus cannot be endorsed or accepted. 33. The issue is required to be considered even in reference to Section 2(1) of the Act of 2002 which defines the words and phraseology under the Act of 2002. It is quoted hereunder for ready reference:- "Section 2 of The Prevention of Money-Laundering Act, 2002" 2 Definitions. - (1) In this Act, unless the context otherwise requires ....
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....nal Attachment Order under section 5 (1) of the Act of 2002. The Adjudicating Authority further recorded a finding that even the notice issued by the Income-tax Department does not make a reference of the Scheduled offence under section 51 of the Black money Act thus Provisional Attachment Order could not have been issued. 38. To analyze the aforesaid issue, it would be relevant to quote Section 5 of the Act of 2002 and is quoted thus:- "5. Attachment of property involved in money-laundering. - (1) Where the Director, or any other officer not below the rank of Deputy Director authorised by the Director for the purposes of this section, has reason to believe (the reason for such belief to be recorded in writing), on the basis of material in his possession, that- (a) any person is in possession of any proceeds of crime; (b) such proceeds of crime are likely to be has been charged of having committed a scheduled offence; and (c) such proceeds of crime are likely to be concealed, transferred or dealt with in any manner which may result in frustrating any proceedings relating to confiscation of such proceeds of crime under this Chapter, he....
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.... officer who provisionally attaches any property under sub-section (1) shall, within a period of thirty days from such attachment, file a complaint stating the facts of such attachment before the Adjudicating Authority." 39. Section 5 authorises Director or any other officer not below the rank of Deputy Director authorized by the Director to attach the property after recording reasons of belief in writing. The Provisional Attachment Order can be passed if a person is in possession of proceeds of crime and such proceeds of crime are likely to be concealed, transferred or dealt with in a manner which may result in frustrating the proceeds for confiscation. The second proviso to Section 5(1) pre-supposes possession of the proceeds of crime and which is likely to be concealed, transferred or dealt with in a manner which may frustrate the confiscation. 40. The first proviso, however, mandates that an order of attachment can be made when a report has been forwarded to the Magistrate under section 173 Cr. P.C. for a Scheduled Offence or a complaint has been filed by an officer competent to investigate the offence for taking cognizance by a Court of Magistrate. As per the first provi....
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.... the process of transfer of assets to frustrate the proceedings not only under the Black Money Act of 2015 but under the Act of 2002. The facts in that regard have been referred by the Adjudicating Authority on page 147 of the impugned order while referring to a letter produced by the Respondent herein. Though it is subsequent to the Provisional Attachment Order, but it is relevant to the extent it makes reference to the action prior to issuance of Provisional Attachment Order and quoted hereunder:- 'Before the letter dated 11-9-2017 was produced by the Counsel for the Complainant during the course of hearing on 9-11-2017, the written replies filed by the defendants in the matter had as one of its annexure produced, letter dated 11.10.2017 received by/on behalf of the Defendant No. 11. As aforesaid the said replies were filed by the Counsel for the Defendants on or about 16-10-2017. As the said letter dated 11-10-2017 received by the defendant no. 11 from the Principle Commissioner of Income Tax, Central-3, New Delhi is very relevant, the same is reproduced hereunder. Dated 11-10-2017 "F. No. Pr. CIT/C-3/Prosecution(B.M.Act)/2017-18/1838 To ....
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....schedule F/A w.e.f. Assessment year 2012-2013), information regarding assets held abroad has to be mandatorily disclosed. You have failed to do so as is evident below. Sl. No. Assessment year Date of filing of ROI and status Return of Income (in Rs.) Assets declared in the schedule FA of ITR-4 (available from A.Y. 2012-13) Date Status 1 2001-02 21-11-02 836010 NA 2 2002-03 19-2-2004 Belated 446121 NA 3 2003-04 19.09.03 888551 NA 4 2007-08 30.03.09 Belated 242500 NA 5 2008-09 30.03.09 Belated 333000 NA 6 2009-10 31.03.10 Belated 459080 NA 7 2010-11 28.03.11 Belated 643160 NA 8 2011-12 30.03.12 Belated 1586680 NA 9 2012-13 25.03.13 Belated 1586680 NIL 10 2013-14 25.03.14 1251570 NIL 11 2014-15 30.03.16 Invalid 1340890 NIL 12 2015-16 30.03.16 Return uploaded 1207860 NIL 13 2016-17 20.07.16 Return uploaded 184420 NIL 4. Subsequently, search operation was co....
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.... foreign Assets) Act, 2015. • Here it is important to mention that during the proceedings under the Black Money (Undisclosed Income and foreign Assets) Act, 2015 in response to the notice u/s 10(1) of the Act dated 22-9-2016 and dated 10-10-2016 you have filed a reply dated 3-11-2016 in you own signature wherein at point no. 3 and 4 you have stated. Quote "3. I must further expressly state and clarify that I do not own, nor I am the beneficial owner of any foreign assets, whether in the form of bank account or foreign immovable property. My association with certain foreign assets would have been only in the past (if at all) and that too only in the capacity of a trustee. In fact, I have resigned from all such fiduciary positions in relation to any ownership or beneficial ownership of any foreign assets" .................. "4.......................... I state that any documents relating to the said properties that i held as a trustee previously are not available with me at the moment, and I will require some time a trace the same." Unquote • However, the evidence gathered and admission of Sh. Sanjeev Kapoor, reve....
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...., however is 2-10-2013. • When confronted with the relevant facts and contents of the pen drive, in his statement recorded on oath, being recorded under section 132(4) of the Income-tax Act, 1961 on 8-2-2017, Sh. Sanjeev Kapoor has admitted that the said pen drive was sent to him by one Sh. Anirudh Wadhwa, who is part of the Wadhwa law Chambers and engaged as advocates on record by you for various legal matters. It is further found that the draft correspondence dated between 23-2-2015 to 15-3-2015 between various parties are part of the single word documents/file and soft copy of the draft correspondence was sent by Sh. Anirudh Wadhwa to Sh. Sanjeev Kapoor fpr vetting and completion of the documentation process. Sh. Sanjeev Kapoor identified Sh. Abhinandan Banjerjee (the author of the word document containing draft of the correspondence) as a junior of Sh. Anirudh Wadhwa. • Sh. Sanjeev Kapoor has further admitted that, you had met him in his South Extension part II office along with his legal team, i.e. Sh. Anirudh Wadhwa of Wadhwa law firm in June July 2016. In the said meeting, it was decided that a trust structure would be set up wherein you would be ap....
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....neficial owner was Sh. Sanjay Bhandari) 3. Property no. 12 Ellerton House, Bryanston Square, London (Held by Vetex Management Holding ltd whose share were purchased by Sh. Sanjay Bhandari). 4. Offset India Solutions. 5. Santech Internation FZC 6. Serra dues Technologies 7. Shamlan Glos. 8. Petro Global Technologies FZC 9. MVD Global 10. Bank account in the name of Serra dues Technologies, Santech Intermationl FZC, Offset India Solutions FZC and in the name of Mr. Sanjay Bhandari" Apart from these entities there are some other offshore entities also which were holding assets in the form of properties and/or bank accounts. The details of some of the offshore entities are as under:- 1. Santech international LLC. 2. Howelport Investment SA. 3. Banyan Corp SA 4. Autentis SARL 5. Wenham Major ltd. 6. OIS Europe 7. Hepworth court a. Halance associated Inc. (which hold Apartment no. 122, Heptworth Court, UK which was bought in year 2014). b Haster Enterprises, Inc. (which holds Apartments no. 125, Hepworth Court, UK which was boug....
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....f Sanjeev Kapoor, who has admitted n oath in his statement u/s 131(1A) of the Act, that he met you during his visit to London between 31-1-2017 and 2-2-2017. In the light of the above, it can be seen that you have failed to cooperate with post search investigation. Further not only have you used illegal means to breach the LOC and escape the country, but you are engaging in illegal means to alienate his assets, including you foreign assets/offshore entities in order to evade the proceedings pending against you in India. All the above described foreign assets and entities are listed at Annexure A to this show cause notice, which have not been disclosed by you for the purpose of taxation in your return for AY. 2017-18 as required under Income-tax Acts, 1961. Your statement was recorded u/s 131 (1A) of the Income-tax Act, 1961 during the cause of search action at your office premise (13, also known as 12 A, Panchsheel Enclave, New Delhi) on 29/30-4-2016. In this statement you have admitted to the undisclosed nature of such foreign assets/entities. In this connection, you were served notice under section 10(1) of the black money (undisclosed foreign income an....
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....nterest in any entity) located outside India, held by him, as during such previous year, or disclose any income from a source outside India,, he shall be punishable with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine" unquote Since, it is evident from the details mentioned above that you have willfully failed to furnish in return information relating to assets (including financial interest in any entity) located outside India as per Annexure-A, it is therefore, proposed to launch prosecution against you under the provisions of section of Chapter V (Offences and Prosecutions) of the Black Money undisclosed foreign income and asset) and imposition of Tax Act, 2015 Hence you are request to show cause why the Prosecution under section 50 of Chapter V Offences and Prosecutions) of the Black Money undisclosed foreign income and asset) and imposition of Tax Act, 2015 should not be proceeded against you. You reply should reach the office of undersigned by 23rd of October 2017 at 11. A.M. (IST), otherwise it will be presumed that you have nothing to say in this matter and the prosecution p....
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....n the Respondent. The notice was not only under the Income-tax Act but Black Money Act, 2015. It is in regard to the non-disclosure of the foreign assets and entities. On the service of the notice, the Respondent attempted to transfer the property and the fact aforesaid was admitted by the Respondent Sanjay Bhandari in his statement before the Income-tax Authority. 48. The criminal activity herein is not for the offence under IPC but in reference to evasion of tax and that too under Black Money Act of 2015. The criminal activity of the Respondent to evade the tax under the Black money Act of 2015 was found from the record seized by the Income-tax Department. The Respondent failed to pay tax by disclosing the foreign assets and income in his Return after enactment of 2015. 49. The value of the evaded tax became the proceeds of crime and being Schedule offence, the Appellant Department has proceeded against the Respondent. The Adjudicating Authority has mis-interpreted the definition of "proceeds of crime" given under section 2(1)(u) and also the definition of Money Laundering under section 3 of the Act of 2002,. Here we may refer para 290 of the judgment of the Apex Court in t....
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....nitiation of action for the Provisional Attachment under section 5. The registration of case for a Scheduled Offence is not a pre-condition for an order under section 5 of the Act of 2002. The Adjudicating Authority has held it otherwise. It held that in absence of registration of case or complaint in compliance of first proviso to Section 5(1), the Provisional Attachment Order could not have been issued. The finding of the Adjudicating Authority runs counter to the facts of this case and the judgment of the Apex Court in the case of Vijay Madanlal Choudhrry (supra). The emphasis of the Adjudicating Authority for a complaint or registration of case for investigation of offence under section 51 of the Black Money Act of 2015 for passing of the Attachment Order is erroneous. We otherwise find that the ECIR reflects Scheduled Offence under section 51 of the Black money Act of 2015. We would be discussing facts referred in the ECIR as it has been analysed by the Adjudicating Authority but recorded perverse finding. 51. The facts relevant of the case have been narrated earlier but needs to be reiterated for the purpose of clarity in reference to the provision referred in the precedin....
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....i on 3-10-2016 at 3.00 P.M. Yours faithfully, (Sanjeev Minocha) Joint Commissioner of Income-tax Central Range-7, New Delhi Sh. Sanjay Bhandari, PAN AACPB3772G During the course of search and seizure action u/s 132 of the I.T. Act, 1961 initiated on 27-4-2016. In your case and connected cases: several documents were found and seized which reveal that you own form of foreign bank accounts and foreign immovable properties. It has been gathered that you had incorporated entities in Dubai as a director/beneficial share holder. Further enquiries suggest that you had financial interest in an entity incorporated in Panama. Such foreign assets and entities have not been disclosed by you for the purpose of taxation. Your statement was recorded u/s 132 (4) of the Income-tax Act, 1961, during the course of search action at your office premise, 13 (also known as 12A). Panchsheel Enclave, New Delhi on 29/30-4-2016. In this statement you admitted to the undisclosed nature of such foreign assets/entities. In this connection, you are requested to state your residential status with evidence and furnish the following details with evidence in respect of such foreign a....
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.... lane, London. It was further admitted that you regularly paying electricity bills of this property since its acquisition in 2013 and the source of acquisition of the property and all other expenses were out of the funds generated by you through Dubai based entities. In this connection. It is requested to furnish the following details: (a) Details of purchase of shares of the entity corporation Shamlan Gros-l Inc., along with source and manner of payment thereof, with supporting evidence. (b) Details of total investment in purchase of this property and also in subsequent renovation etc. along with source and manner of payment thereof, with supporting evidence. (c) Details of payment made to broker/consultant for acquisition of this property along with source and manner of payment thereof, with supporting evidence. (d) Details of expenses incurred in upkeep of this property with source of expenses and manner of payment, with supporting evidence. (e) Details of Dubai based entities from where funds were generated by you to purchase shares along with payment details. The income generated through these Dubai based entities since the....
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....ncurred in upkeep of this property with source of expenses and manner of payment, with supporting evidence. (e) Payment details through Santech International, Dubai to purchase shares. The income generated through Santech International, Dubai since its incorporation till date. (f) Fair market value of this property/holding company as on 1st April, 2016 with supporting evidence. (iv) Offset India Solutions FZC: In your statement recorded u/s 132(4) of the I.T. Act it has been admitted that an entity in the name of Offset India Solutions FZC, UAE was incorporated by you in 2010 engaged in offset advisory services. It has been further admitted that the income accrued from this entity as no reflected in your Income-tax Returns. It has been gathered that you are the authorized signatory in bank accounts held in the name of the entity. In this connection, it is requested to furnish the following details along with evidence: (a) Audit Report and Audited financial statements for all the financial year since the inception of the entity. Copy of incorporation certificate and memorandum of the entity. (b) Copies of your account wi....
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....inception till date with manner of accounting/utilization of the said income with year wise break up and supporting evidence in this regard. (e) Copies of all bank statements of the entity since its inception along with narration of entries. (f) Your percentage of ownership in the entity along with complete names addresses of all other Indian residents who are beneficial owners of the entity. Details of financial interest of different shareholders in the entity. (g) Details and addresses of all immovable and other assets owned by the entity. (h) Fair market value of your share in the entity as on 1st April, 2016 with supporting evidence. (vi) Serra Dues Technologies: From your emails extracts, which were seized during the course of search action, pages 100-102 of Annexure-A-2, contain email dated 31-8-2009 to your at [email protected] from your associate, Sh. Rajesh Ambikan, requesting your signature on the enclosed documents, which include Minutes of Meeting of Serra Dues Technologies, discussion on your resignation as director of Serra Dues Technologies. Page-54 of the same Annexure contains another email dated Octobe....
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....ong with evidence: (a) Audit Report and Audited financial statements for all the financial years since the inception of the entity. Copy of Incorporation certificate and Memorandum of the entity. (b) Copies of your account with the entity for all the financial years since the inception of the entity. (c) Details with source and manner of your investment in the above said entity with supporting evidence. (d) Details of income generated/accrued to you from this entity since inception till date with manner of accounting/utilization of the said Income with year wise break up and supporting evidence in this regard. (e) Copies of all bank statements of the entity since its inception along with narration of entries. (f) Your percentage of ownership in the entity along with complete names and addressed of all other Indian residents who are beneficial owners of the entity. Details of financial interest of different shareholders in the entity. (g) Details and addresses of all Immovable and other assets owned by the entity. (h) Fair market value of your share in the entity as on 1st April, 2016 with supporting evidence. ....
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....Memorandum of the entity. (b) Copies of your account with the entity for all the financial years since the inception of the entity. (c) Details with source and manner of your investment in the above said entity with supporting evidence. (d) Details of income generated/accrued to you from this entity since inception till date with manner of accounting/utilization of the said Income with year wise break up and supporting evidence in this regard. (e) Copies of all bank statements of the entity since its inception along with narration of entries. (f) Your percentage of ownership in the entity along with complete names and addressed of all other Indian residents who are beneficial owners of the entity. Details of financial interest of different shareholders in the entity. (g) Details and addresses of all Immovable and other assets owned by the entity. (h) Fair market value of your share in the entity as on 1st April, 2016 with supporting evidence. (x) Account Number 1021497657901 (USD), in the name of Santech International FZC, P N. No. 96153, Dubai held with Emirates Bank International, A1 Qusais Branch, Dubai: ....
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....e a bank account in the name of Offset India Solutions with the Emirates Bank The Information gathered reveal that Offset India Solutions has the following four banks accounts with the following details with Emirates Bank International, Dubai and you are the authorized signatory of this bank account: (a) Account number 1011507575301 (AED), (February, 2014, credit of 1878 AED) (b) Account number 1011507575302 (c) Account number 1011507575303 (EURO), (18-9-2010 4-6-2012, credit of 1905781 EURO) (d) Account number 1011507575304 (CHF), (28-7-2011-28-7-2012, credit of 9861937 CHF) In this connection, it is requested to furnish copies of all bank statements of Offset India Solutions since its incorporation along with source of credits till date and narration of entries. Also furnish copy of account opening form with details of authorized signatories. (xiii) CIF number 43025466, in the came of Sanjay Bhandari, held with Emirates Bank NBD(PISC). Baulyas Road, PO Box 777, Deira Dubai UAE: During the course of search action at the residence of Sh. Ashok Shankar at A-341, First floor, Defence Colony, New Delhi, a bank document was....
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....51 of the Black Money Act of 2015. 55. The Adjudicating Authority referred certain notices issued by the Income-tax Authority to show that no case was registered for an offence under section 51 of the Black money Act of 2015 before recording of ECIR and issuance of Provisional Attachment Order. It is in ignorance of the fact that registration of the case for Scheduled Offence is not a pre-requisite for issuance of the Provisional Attachment Order when second proviso to section 5(1) is invoked thus the Adjudicating Authority has recorded erroneous finding about the non-registration of the case for an offence under section 51 of the Black money Act of 2015. 56. The Adjudicating Authority has quoted different notices but while quoting the notice dated 22-9-2016, the complete material appended to it, sufficient to make out a case under section 51 of the Black Money Act of 2015 was not referred and quoted and accordingly the impugned order was passed after recording perverse findings. It is by considering irrelevant material while relevant was ignored. 57. The order otherwise is based on mis-interpretation of the provision of law. At this stage it would be relevant to refer oth....
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....ude a case where any person - (i) has in his possession or control any books of account or other documents (being books of account or other documents relevant to any proceeding under this Act) containing a false entry or statement; or (ii) makes or causes to be made any false entry or statement in such books of account or other documents; or (iii) willfully omits or causes to be omitted any relevant entry or statement in such books of account or other documents; or (iv) causes any other circumstance to exist which will have the effect of enabling such person to evade any tax, penalty or interest chargeable or imposable under this Act or the payment thereof." 59. Section 50 would be made out on failure of the assessee to furnish information about any foreign assets and income including financial interest in any entity, located outside India. The Income-tax Authority admittedly initiated action under section 50 of the Black money Act of 2015 which means that the Respondent willfully failed to furnish Return and information relating to assets and income outside India during the relevant years. The initiation of action under section 50 had direct ....
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....2016 alone while in para 3 of the ECIR, the reference of order dated 22-9-2016 has also been given with the complete material referred thereafter to make out a case for offence under section 51 of the Black Money Act. In the same manner, para 7 (a) of the ECIR has been referred only in reference of the order dated 14-9-2016 under section 127 of the Income-tax Act while perusal of the para 7 makes a disclosure of all the relevant facts to satisfy the offence under section 51 of the Black Money Act of 2015. It has referred other notices also. In the same manner, a reference of the para of 2.4 of the Provisional Attachment Order dated 1-6-2016, has been referring to the order dated 14-9-2016 only, ignoring other notice alongwith material. Thus, the arguments of the Respondent in reference to it and findings of the Adjudicating Authority cannot be accepted. Whether assessment of the tax was required before the issuance of the Provisional Attachment Order 63. The Learned Adjudicating Authority has referred to Section 10 of the Black Money Act of 2015 to show that evasion of tax can be only after the assessment to make out a case of evasion of tax. The finding is in ignorance of Se....