New Delhi2 hours ago
- copy link
The Bombay High Court has ordered the Income Tax (IT) Department not to take any punitive action against Reliance Group Chairman Anil Ambani under the Black Money Act.
The IT department has accused Ambani of tax evasion of Rs 420 crore on undisclosed funds of more than Rs 814 crore kept in two Swiss bank accounts.
The division bench of Justice BP Colabawala and Justice Firdosh Pooniwala has accepted Ambani’s petition for final hearing.
The court said that other similar petitions challenging the provisions of the Black Money Act, 2015 are also pending before the court.
Allegation of having ₹814 crore in two bank accounts of Switzerland
The Income Tax Department alleges that Anil Ambani has deliberately hidden information about his foreign bank accounts and financial interests from Indian tax authorities.
The assessing officer of the department had passed an assessment order under section 10(3) of the Black Money Act on March 31, 2022. In this order it was said that Ambani had undeclared foreign assets.
There is a connection with Bahamas and British Virgin Islands
According to the IT department notice, Anil Ambani was the ‘economic contributor’ and ‘beneficial owner’ of ‘Diamond Trust’ based in Bahamas and ‘Northern Atlantic Trading Unlimited’ (NATU), a company registered in British Virgin Islands. The department has described it as a case of ‘deliberate’ tax evasion.
Court said- appeal will continue, but no action will be taken
The High Court noted that Anil Ambani has already challenged the assessment order before the Commissioner of Income Tax (Appeals). The court made it clear that the appeal process can proceed and orders can also be issued on it.
However, until this writ petition is heard and finally decided, no punitive action like prosecution or imposition of fine will be taken against the petitioner.
2015 law cannot apply to old cases
Anil Ambani has argued in the petition that the Black Money Act was implemented in the year 2015. Whereas the transactions which the IT department is investigating are related to assessment years 2006-07 and 2010-11.
According to Ambani, the provisions of this Act cannot be implemented retrospectively. He has also termed some provisions of the Act as against the Indian Constitution. The court has directed the central government to file its reply on this.
If found guilty, he may be jailed for up to 10 years
According to the notice of the Income Tax Department, Anil Ambani may have to face trial in this case under sections 50 and 51 of the Black Money Act.
If found guilty under these sections, there is a provision of maximum jail sentence of 10 years and fine. At present, after the order of the High Court, he has got interim relief and the final hearing of the case will be held later.
What is Section 50 and 51 of the Black Money Act?
‘Under sections 50 and 51 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, if a person knowingly does not declare his foreign accounts or assets in the IT return or tries to evade tax, he can be prosecuted. There is a provision of heavy fine along with minimum 3 years and maximum 10 years rigorous imprisonment.
Read this news also…
Adani Energy becomes the largest smart meter company: Bought Intellismart for ₹ 3,050 crore, now the company will have a portfolio of 4.7 crore smart meters.
Adani Energy Solutions Limited (AESL) has purchased IntelliSmart Infrastructure Company. This deal has been done for a total of Rs 3,050 crore. Under this, AESL will get the entire 100% stake of Intellismart. Read the full news…
Source link
[ad_3]
