TaxTMI 
TaxTMI 
2025 (9) TMI 1540
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....Counsel appeared FINAL ORDER This order would address batch of four appeals preferred against the order dated 09.07.2020, passed by the Adjudicating Authority, whereby penalty of Rs. 66,55,000/- was imposed on Smt. Radha Timblo, for contravention of Section 3(a) of Foreign Exchange Management Act, 1999. A penalty of Rs. 2,02,00,000/- was imposed on Rohan Satish Timblo for the contravention of the same provision of the Act of 1999 and lastly, a penalty of Rs. 55,45,000/- on Surendra Satish Timblo for the contravention of Section 3(a) of the Act of 1999. The Appeals have been preferred by the noticees on whom the penalty has been imposed. They were served with the show cause notice, alleging that the foreign currency to the tune of U....
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....ho sought to have settled an overseas trust named Colares Trust on 01.09.2011 in Singapore. He remitted/settle EURO 100,000 on 12.11.2012 and EURO 600,000 on 21.12.2012. Those funds are alleged to be owned by Shri Rohan Satish Timblo. The Respondent collected evidence to prove first part of the case, which was in the form of the application formed to obtain citizenship of St. Kitts and Nevis, apart from its notarization, followed by the Police Verification, which was taken to be sufficient to prove their case and in fact, the Appellants named above said to have obtained/given citizenship in the year 2013. So far as the second part and transfer of EURO 700,000 to Singapore in reference to the trust established by Rohan Satish Timblo conce....
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....n citizenship of St. Kitts and Nevis followed by its notarization, though the Appellant had denied application to obtain citizenship of the said country. The Respondent even relied on the Police Verification to take it for obtaining citizenship while it was for the Visa. The entire case has been made based on assumptions and the impugned order has been passed by the Adjudicating Authority on surmises and conjectures. Coming to the second lame of the allegation, the Ld. Counsel for the Appellant submitted that the so called letter of Rohan Satish Timblo has been relied to show remittance of EURO 100,000 at one instance and EURO 600,000 on the other. The letter produced by the Respondent was denied. In fact, original document was not produ....
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....as showing it to be for Visa and not for the citizenship but it is a fact that no police verification is required for Visa. Thus, it was rightly taken to be a verification to obtain proper verification for obtaining citizenship of St. Kitts and Nevis. Based on the material aforesaid, when further investigation was caused, it was found that Appellant Radha Satish Timblo remitted USD 3,00,000, equivalent to Rs. 1,66,35,000 to obtain the citizenship of St. Kitts and Nevis. In the similar manner, Surendra Timblo remitted USD 2,50,000, equivalent to Rs. 1,38,62,500. It was shown to be investment in the country of which they were intend to obtain citizenship, which was in fact granted in the year 2013 but later on cancelled in the year 2017. T....
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....be submitted for obtaining citizenship and was duly notarized. It is also with police verification required for the citizenship of the above country. The facts aforesaid have been denied by the Appellant. It was submitted that no application was to be submitted by the Appellant to obtain citizenship. In fact, they were intend to visit the country for which only Visa was required and thereby the police verification was sought and given. It is with further statement that there is no evidence produced by the Respondent to prove remittance of foreign exchange to obtain citizenship of the other country. Facts aforesaid are required to be analyzed by us. It would be relevant to refer Section 3(a) of the Act of 1999 and would be gainful to quot....
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....tizenship, the basic element of foreign remittance is missing, which could not be proved by the Department. It could have been taking the back statement or other material to corroborate the evidence otherwise collected in the form of the citizenship application and notarization but there seems to be no effort of the Respondent to collect corroborating evidence. It could have been in the form of the bank statement and similar other evidences. The allegation cannot rest on hypothesis, on presumption. The order shows it to be based on the presumption otherwise reference of the evidence to prove the allegation would have been produced and proved. The second part of the allegation to deal with EURO 700,000 in Singapore in reference to a trust....