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6. A search was conducted on November 26, 1983, under the provisions of the Income-tax Act in the residence of accused Nos. 1 to 5, 11 and 12, at Flat No. 65 Bhaiya Complex, 286, Purasawalkam High Road, Madras-7. The office of Mohnot and Co., 16, Ramanan Road, Madras-79, was also searched. Locker No. 27 in Bank of Rajasthan, Sunkurama Chetty Street, Madras-1, was also searched.

7. During the search of residential premises, an income-tax office file bearing G.I. No. 6730/B IV(6) relating to an assessee by name S. K. Balu Chettiar, individual, residing at No. 61, C. B. Road, Madras-21, was found. The file is said to have been stolen from the Income-tax Officer, City Circle IV(6), Kannammai Buildings, No. 661, Anna Salai, Madras-6, and it contained income-tax assessment records for the assessment year 1959-60 to 1980-81 and wealth-tax assessment records for the assessment year 1972-73 to 1979-80. Several pass books and cheque books with signed blank leaves of various banks and relating to various bogus transactions including the account books of fictitious and non-existing firms such as Nagasubbiah and Co., Hasan and Co., written by A-7, Ramani, were also found and seized. Pay-in-slips relating to Ashoka Traders, air tickets in the names of N. K. Mohnot, A-1, and M. A. Subban, A-8 to Trivandrum, bus tickets along with the accounts slips written by N. Mani, A-6, and records relating to Hindustan Electronics, a proprietary concern of A-12, Smt. Hema Mohnot, and other records were seized. A panchnama was also prepared for the records seized from Mohnot and Co. and the same was acknowledged by A-1. Statements from accused Nos. 1, 4, 5 and 12 as provided under section 132(4) of the Act have been recorded. A-4, Sanjay Prakash Mohnot, and A-1 N. K. Mohnot, were specifically questioned as to the hiring of locker No. 27 in Bank of Rajasthan at Sunkurama Chetty Street, Madras-1. The locker is alleged to have been hired in the name of A-4 and A-1 had continuous power of attorney from A-4 to operate the said locker; but both of them denied that there was any locker in the Bank of Rajasthan or in any other bank.

8. Locker No. 27 in the Bank of Rajasthan was sealed, and A-1 produced the key of the locker before the authorised officer on January 24, 1984, in pursuance of a letter written to him. The locker was opened in the presence of A-1, bank officers and witnesses. The contents of the locker were bundled up and taken to A-1's house and inspected in the presence of A-1 and one Vijayakumar Francis, and they where listed and a panchanama was prepared, duly acknowledged by A-1. Among the contents of the locker, there was a cover containing pieces of papers with carbon of signatures of certain persons, blanks letter-head forms of Hindustan Produce Co., Trivandrum, copies of the Income-tax Department's internal audit objections in the case of two firms, M/s. Naga Subbiah and Co. and M/s. Babu & Co. which are alleged to be not only objectionable but also confidential in nature, the indemnity bond prepared in the case of one V. Krishnan, some blank stamp papers purchased in the same name of Babu and Co., acknowledgment give by the Department for two income-tax returns filed in V. Krishnan's case, the bank pass books, cheque books, pay-in-slips pertaining to the accounts opened in the name of N. Purushothaman and D. Bellia in the Trivandrum Co-operative Urban Bank Ltd., pass book for the current account opened in the name of P. F. Das and Sons in Canara Bank, Broadway, the pass books and cheque books standing in the name of A-1, promissory notes standing in the names of M/s. Asoka Traders, Hindustan Electronics, etc., were found along with other documents and certain jewels. Certain receipts signed by A-16, V. Dhanalakshmi, mother of A-15, who is an employee of the race club, acknowledging receipt of the money were also found.

14. The locker that the alleged to have been operated by A-1 in the name of A-4, when searched, revealed an acknowledgment for having filed returns for P. Jayachandran before the Second Income-tax Officer, Special Survey Circle, Madras. A carbon copy of the statement of total income for the purpose of income-tax filed along with the said return was also found in the said locker. One of the carbon traced signatures from temporary T.D.S. certificate that was found in the said locker is found to be that of the aforesaid Jayachandran.

16. Further investigation revealed that another return was filed before the Income-tax Officer, Circle I(2) Villupuram, for an alleged firm, Hassan and Co., at Tindivanam. The return describes Jayachandran as one of the partners of the said firm and a photostat copy of the duplicate T.D.S. was enclosed with the return. Enquiry by the Department revealed that there is no such firm existing at Tindivanam during that period. A-7, Ramani, is alleged to have written certain accounts books and they have been seized from the residence of A-1. The returns alleged to have filed in the name of Hassan and Co. were found forged. Statement were filed by A-1 in connection with the return of the said firm through his clerk, A-6, before the Income-tax Officer, Villupuram, A-1 has represented a bogus firm and has used false documents containing forged signatures to use them in proceedings before the Income-tax Officer, Villupuram. One more return in the name of Jayachandran has been filed with the Income-tax Officer, Salaries, Circle II(4), Madras, on May 20, 1982. The acknowledgment for having filed such a return and the carbon copy of the statement filed along with the return are found in the locker. One Purushothaman of Trivandrum has also won a jackpot in the races held at Ooty. Though he was given a temporary T.D.S. certificate, he never received the original T. D. S. for the deduction of tax on the winnings. The original T.D.S. certificate was found to have been filed before the Income-tax Officer, 'B' Ward, Salaries Circle, Trivandrum, on September 24, 1982. The return is said to have been authenticated and signed by Purushothaman. The return had enclosures one of which carried information to the effect that Purushothaman was an employee at Trivandrum during the relevant time. The certificate had been signed by Mrs. Kumudini Subhan, A-9, wife of M. A. Subban, A-8, as proprietress of M/s. M. A. Exports Consultants, Madhavi Mandram, Sankar Road, Trivandrum-10 It was brought to light during the enquiry that there was no firm in the address stated above and that Mrs. Kumudini subhan, A-9, never lived or worked at the above address. The income-tax tax Officer, 'B' Ward, Salaries Circle, Trivandrum, believing the aforesaid false representation, and acting on the false certificates. The refund order was deposited in a spurious account opened in the name of M. S. Purushothaman in the Trivandrum Urban Co-operative Bank Ltd. The pass book, the cheque book and the other documents pertaining to this account have been seized from the locker in the Bank of Rajasthan which stood in the name of the fourth accused who is brother of A-1. According to the complainant, the cheque leaves contained forged signatures of M. S. Purushothaman and one of the cheques had been issued to Asoka Traders, a bogus firm, in which A-5 brother of A-1, had been a partner.