Taxation lawyer: the penalty cannot be imposed by the the competent authority under FEMA if the steps are taken to recover the money.- 11:00
Supreme Court of India
Justice Abhay Manohar Sapre
The appellant suffered the penalty under FEMA for loss of foreign exchange as the money was not received by the appellant; and the high court has held that the appellant has not taken steps to recover the money.
The Tribunal had originally set aside the penalty on the ground that the steps were taken by the appellant for recovering the money, therefore, there was no occasion for the competent authority to impose penalty upon the appellant. The high court, to the contrary, had set aside that order of the Tribunal while recording erroneous finding that the steps were not taken by the appellant for recovering the money.
As the finding of the High Court was materially perverse, the order of the High Court was set aside, and the matter was remanded back for fresh consideration to the High Court.