9911796707
TMI Blog1994 (7) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioner was a detenu and has suffered an order of detention, therefore, he is covered by the provisions of section 2(2)(b) of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (hereinafter referred to as " SAFEMA "), that he had acquired agricultural land in June, 1974, for a total consideration of Rs. 12,861, that he is not able to establish that the entire consideration was paid from lawful sources and that he has failed to satisfy that consideration to the extent of Rs. 7,861 was from lawful sources. The competent authority has accepted the case of the petitioner to the extent that out of Rs. 12,861, a sum of Rs. 5,040 came from the sale proceeds of the jewellery of his wife. Accordingly, the competent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the case of loan put forth by the petitioner was an afterthought and it was not the case that was put forth initially, both the authorities are justified in rejecting the oral evidence recorded by the Income-tax Officer on Commission. It is also submitted that the competent authority and the Tribunal have given several reasons for rejecting the evidence and that non-production of the witnesses for cross-examination is not the only reason to reject the evidence by the competent authority. We have been taken through the orders of the competent authority and the Tribunal. Both have accepted the case of the petitioner that a sum of Rs. 5,040 was obtained by sale of jewellery belonging to the wife of the petitioner. Both the authorities hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of the said Act shall, so far as may be, apply accordingly. " Therefore, it is open to the competent authority for the purpose of the proceedings under the SAFEMA to appoint any officer of the Income-tax Department to conduct any inquiry, investigation or survey in respect of any person, place, property, assets, documents, books of account or any other relevant matters. The Income-tax Officer appointed as Commission performs the duties and functions of the competent authority, which are otherwise required to be done by the competent authority. If that be so, the proceedings of the officer of the Income-tax Department appointed as Commission become part of the proceedings of the competent authority. Hence, the question of producti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence corroborated the case of the petitioner and from the demeanour of the witnesses, he got the impression that they were telling the truth. This part of the proceedings of the Income-tax Officer has been completely overlooked. Under these circumstances, we are of the view that the finding recorded by the competent authority and the Appellate Tribunal on the question of loan availed of by the petitioner for purchasing the agricultural land in question cannot be held to be valid, as the same is arrived at on the wrong premise that the witnesses whose evidence was recorded by the Commission, should have been produced before the competent authority, secondly, on overlooking a part of the report made by the Income-tax Officer regarding the ver ..... X X X X Extracts X X X X X X X X Extracts X X X X
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