1990 (12) TMI 50

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..... oreign Exchange and Prevention of Smuggling Activities Act, 1974, by the order of the Tamil Nadu Government dated July 19, 1974. He is, therefore, an affected person in terms of section 2(2)(b) of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 ( I hereafter the "Act"). The Competent Authority, Madras, issued to him notice dated July 9, 1987, under section 6(1) o .....

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..... eign Exchange and Prevention of Smuggling Activities Act, 1974, and further the reasons recorded by the Competent Authority for issuing him a notice under section 6(1) of the Act are defective. Later on, during the course of arguments, learned counsel did not press these points. The items of properties detailed at (1) and (2) above are immovable and the one detailed at (3) is movable. Item No. ( .....

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..... the income-tax authorities. Keeping in view the fact that the appellant has been doing business continuously and was assessed to income-tax since 1961-62, and further the assessments were made under section 143(3) of the Income-tax Act, it is difficult to hold that the appellant had no legal source of income to purchase a plot of land for Rs. 2,400 in 1963 and to make construction worth Rs. 17,000 .....

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..... 71, the appellant could not spend Rs. 8,000 for the construction of five shops from his known legal sources. The finding of the learned Competent Authority to the contrary is reversed. Item No. (3) : The appellant had been running a business relating to money-lending, brokerage, etc., which were started in April, 1957, with an initial capital contribution of Rs. 3,000, which later increased to Rs .....

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..... ,000. Keeping in view the fact that the appellant is an income-tax assessee since 1961-62 and that the investment of Rs. 3,000 was made as far back as in 1957, the adverse finding of the learned Competent Authority against the appellant regarding this item cannot be upheld. In the result, the appeal is allowed and the order of the Competent Authority set aside.
Case laws, Decisions, Judgement .....

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