TaxTMI 
TaxTMI 
2024 (9) TMI 1904
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....1 of Indian Penal Code 1860 and section 13(2) read with section 13(1) of Prevention of Corruption Act of 1988 (in short, the Act of 1988). It was alleged that Sanjeev Kumar Singh, in connivance with other bank officials and private persons, sanctioned and disbursed various loans to the different persons on the strength of false/forged documents, violating banking norms/ guidelines and cheated the bank fora sum of Rs. 3,70,91,283. 3. In the CBI investigation, it was revealed that based on forged and fabricated documents, loan was sanctioned by the bank officials in connivance with others, which includes the appellants. The private person involved in the case was Sushanta Burwa, who in connivance with the appellant, Manikut Bayan, opened 3 fictitious firms, namely M/S Progressive Motors, M/S Prayag Equipment's, M/S Ram Dooth Machinery in the guise of dealing in the sale and purchase of excavators. Sushanta Burwa, in connivance with the appellant and others, fraudulently received loans proceeds to the tune of Rs. 17.68 crores in the account of the fictitious firms, run by the appellant. The loan was taken in the names of labors/ workers/helpers working in those fictitious firms, us....
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....achment order has been confirmed by the adjudicating authority. Thus, on that ground also, the impugned order deserves to be set aside. 9. The counsel for the appellant elaborating the argument, further submitted that relevant documents along with the reply could not be filed before the adjudicating authority but has been filed along with the appeal and thereby it may be taken into consideration. The documents submitted along with the appeal would reveal that the appellant had disclosed the source of acquisition of property and thereby it could not have been considered to be the proceeds of crime. The counsel of the appellant made reference of the pleading to show that property attached by the respondent was acquired after taking loan from the bank and other sources, which may be the personal sources and thereby the property attached by the respondent could not have been taken to be the proceed of crime. 10. The prayer was made to set aside the order on the ground aforesaid. The counsel prayed for the remand of the case to provide proper opportunity of hearing. Argument for the counsel for the respondent 11. The counsel for the respondent contested the appeal on all the....
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....ise contested that the loan fraudulently borrowed from the bank came in the account of three firms of the appellant. Therefore, the property worth of the equivalent amount has been attached. The Income Tax Return does not refer to the loan amount for the acquisition of the property attached by the respondent. 15. The balance sheet filed with the Income Tax Return shows home loan for other property prior to the acquisition of property attached by the respondents. Thus, appellant failed to show the source of income to acquire the property and therefore rightly attached by the respondents. The prayer was made to dismiss the appeal. Finding Of the Tribunal 16. We have considered the rival submission of the party and perused the record. The facts on records reveal that appellant failed to submit reply within the scheduled time. The para 4.1 and 4.2 of the order passed by the Adjudicating Authority are quoted for ready reference: - 4.1 "On May 12, 2023, during the scheduled date for final hearing, the legal representatives for (D-1) and (D-2) brought to the attention of the Bench that D-1 and D-2 were only served with the Original Complaint (OC)/Revised Understanding of....
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....eding before the Adjudicating Authority. A reference to Income Tax Return was given and has been considered by us. The learned counsel of the appellant was asked to refer the Income Tax Return of the year when the property attached by the respondent was purchased after taking loan from the bank. The counsel failed to refer in the IT Return and the balance sheet of the year in which the property was purchased and has been attached. It is to indicate that property was purchased out of the loan rather what we find that if in the Income Tax Return of assessment year 2020-2021, a reference of home loan from the Punjab and Sind Bank has been given, then it is different than the property attached herein. 19. In view of the above, the appellant failed to submit any document even when opportunity for it was given by the Tribunal which alleged to have not been given by the Adjudicating Authority. In the light of the aforesaid we don't find that any prejudice has been caused to the appellant in reference to the order of the Adjudicating Authority refusing to accept the reply when full opportunity has been given by us. 20. It is stated that personal loans were taken even from the friends....