9911796707
TMI Blog1989 (4) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... reign Exchange and Prevention of Smuggling Activities Act (hereinafter referred to as the "COFEPOSA Act") on September 22, 1975, and was released shortly after the lifting of the Emergency. Because of his detention, the Competent Authority came to the view that he fell within the purview of " person" under section 2(2)(b) against whom proceedings under the SAFEMA could be taken. After recording reasons, a notice under section 6(1) was, therefore, directed to be issued to him on May 19, 1981. Nothing material thereafter happened for six years and a fresh notice under section 6(1) on similar terms was issued on May 7, 1987. In the order dated July 22, 1988, the Competent Authority recorded that since the latter notice included the properties ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been the categorical statement made by the appellant as to the acquisition of the land. The Competent Authority, without discussing this case and without laying hand on any evidence to the contrary, just made an order for its forfeiture. In our opinion, it would be sheer abuse of the provisions of the SAFEMA if lands acquired by ancestors half a century earlier are sought to be forfeited. After all what was there to show that they were illegally acquired. The grandfather had been long dead and he alone could have explained the source of investment. The appellant must have been a minor then. This forfeiture cannot be sustained. Next property involved is a dharamshala and two temples along with the appurtenant land. Their present estimat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness under the name of Shree Bhagwati Silver Bhandar was started. There is no dispute that the investment in this new business was brought forward from the old business as reflected in its account books. The business of Roopchand Premchand was started by the appellant in the financial year 1970-71 with an initial capital investment of Rs. 5,000. Al This, according to him, was from his savings from fariani business which he had earlier carried on for six years and the services which he rendered to Mahabir Flour Mills for a year. The appellant has been an assessee from the assessment year 1971-72 and at no stage had the Income-tax Officer disputed the availability or legitimacy of the amount of Rs. 5,000 with him for initial investment and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evant and cogent evidence produced by the appellant, and unless the Competent Authority could lay hands on something material to the contrary, those assessments should have been given their due weight and respect. From the list of cash credits referred to in the impugned order, it appears that the cash credits which were of any substance were all prior to 1980. From the side of the Competent Authority it has been stated that notice under section 148 of the Income-tax Act had now been issued by the Income-tax Officer to the appellant after obtaining approval from the Central Board of Direct Taxes for reopening those assessments. The appellant has, however, stated in the grounds of appeal and also before us that these notices have been got ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may never appear in the form of actual investment. It is treated as a valuable intangible asset and can draw from personal reputation-, local reputation and objective reputation of the products of the business. It would, therefore, be a totally misplaced approach to assume that the small capital of Rs. 5,000 alone played the trick.. If such capital alone could yield income, then most of the Government servants retiring and obtaining much larger amounts should be well flourishing in trade. The Competent Authority has thus taken a very myopic view of the business affairs of the appellant by entirely attributing them to Rs. 5,000 initially invested, and forfeit whatever the appellant has established himself by dint of his perseverence, goodwil ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
