TaxTMI 
TaxTMI 
2025 (6) TMI 537
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....rnakulam. No recoveries were made from house. Residential premises of Shri. P.A. Noushad, Puthemoolayil House, Perumattom, P.O. Muvattupuzha, Ernakularm- 6866 673. A car bearing regn. No. KL-17-G-9000 parked in the said premises belonging to Shri. Kunjumohamed was forcibly opened and searched since the key was not produced. Certain loose sheets containing notings of some land deal and money transactions were seized. His shop at Yenke Money Transfer (Shop), Market Junction, Market P.O. Muvattupuzha, Ernakulam 686673 (Propertorship of Shri. P.A. Noushad) was also searched. An amount of Rs. 7,21,800/- of unaccounted Indian currency and certain documents was seized. 3. The shop mentioned above was managed by Shri. Leenas, accountant and employee of Noticee. He was summoned to appear before the I. O. on 18.07.2014 and his statement was recorded the same day. He stated that he is aged 35 years and holder of passport no.L6055862; that his PAN is ACUPL5768N; that he completed his B.Com degree; that he has been working in M/s. Yanke Money Transfer as a accountant since 2007; that he has four bank accounts; that M/s. Yenke is doing money transfer business for western union, express money, ....
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....Branch, A/c No.00202000010881 in HDFC. Thodupuzha Branch: that regarding the source of the cash seized, he stated that an amount of Rs. 3 lakhs was the money of his staff Sri Leenas and the balance amount of the firm withdrawn from the bank; that he knew that keeping money other than that of the business in the firm is against the RBI regulations in this regard; that he will furnish the statutory records like FLM forms. FLM forms, concurrent audit reports etc. at an early date; that he is furnishing his IT returns for the years 2008-09, 2009-10, 2010-11 and his property details; that he has no connection with the documents seized from the car being kept at his house. 6. Since the documents called for was not received, a letter dated 11.11.2014 was issued to Noticee requisitioning the same. The Noticee on date 9.2.2015 had filed copies of RLM 1 statement along with the copies of his Income Tax returns; Commission payment details from Weizmann Forex, but failed to file other documents. 7. Shri Leenas has stated that an amount of Rs. 3 lakhs belonged to him as he had taken the same as loan from M/s. City Bankers pledging Gold. This was verified from M/s. City Bankers and found to ....
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....rity which is not in conformity with the terms of his authorization under this section." 10.1 The Reserve Bank of India has issued Master Circular No. 10/2013-14 dated 1.7.2013 on Memorandum of instructions governing money changing activities. As per Para 14 of the said Circular: - i. AMCs shall maintain the following Registers in respect of their money- changing transactions: a. Daily Summary and Balance Book (Foreign currency notes/coins) in form FLM 1. b. Daily Summary and Balance Book (Travellers' cheques) in form FLM 2. c. Register of purchases of foreign currencies from the public in form FLM 3. d. Register of purchases of foreign currency notes/coins from authorized dealer and authorized money changers in form FLM 4. e. Register of sales of foreign currency notes/coins and foreign currency travellers' cheques to the public in form FLM 5. f. Register of sales of foreign currency notes/coins to authorized dealers/authorized money changers/exported in form FLM 7. ii. All registers and books should be kept up-to-date, cross- checked and balances verified daily. iii. Transactions not pertaining to money changing business of the AMC should not be mixed ....
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....m the car park in his house are not his, he had gone abroad to look after his brother's business. Out of the money seized on 21.5.2014 includes Rs. 3 lakh taken as gold loan by his staff Leenas and same was kept in the office for closing the loan. The noticee submits that he had given all the details of money transfer business, maintenance of the books. Ledger etc. He further adds that himself and Leenas had given correct statements and there was no requirement of 2nd statement from Leenas. He states that the same was done with an intention to frame him, the 2nd statement Leenas stated that the amount of Rs. 7,21,800/- was given to him by the noticee. The noticee alleges that he was told that, Leenas was tortured by the enforcement officers and since Leenas did not have support, hence did not retract from the statement given on 21.5.2016. The Assistant Director on the basis of material on record conducted the enquiry after issuing notice dated 25.08.2016 and thereafter imposed the penalty of Rs. 4,00,000/- vide order dated 02.09.2016. Aggrieved by the said order present appellant filed appeal before the Special Director (Appeals), Chennai on 14.10.2016. The said appeal was di....
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.... his house on 21.05.2014. He further tried to explain that appellant visited the foreign countries to look after his brother's business. He further argued that in his statement Sri Leenas has specifically stated that he was holding two branches of Axis Bank in Thodupuzha and SBT and one account in UCO Bank at Moovattupuzha. He also stated that he pledged about 360.300 grams of gold ornaments in UCO Bank, Moovattupuzha, under agriculture loan scheme and that said loan is yet to be closed. He also disclosed that he had pledged 131.300 grams of gold in City Bank, Moovattupuzha on 13.05.2014 with 24% interest and with regard to the Rs. 7,21,000/- seized by ED. He stated that it included cash of Rs. 3,00,000/- taken by him as gold loan on 03.05.2014 and the money was kept in the office by him for closing the loan and that the amount of Rs. 4,21,000/- was a cash withdrawn from the Axis Bank and HDFC Bank in the previous week. He further pointed out that is the second statement of the appellant and Leenas was falsely recorded by ED and the same needs to be ignored being recorded under threat and duress. The prayer was accordingly made to set aside the impugned order and allow the present ....