Anil Dhirajlal Ambani v. UOI (2023) 292 Taxman 17 (Bom.)(HC)

Black Money (Undisclosed Foreign Income & Assets) and Imposition of Tax Act, 2015 .

S.50: Punishment for failure to furnish return of income –Information about an asset – located outside India – Punishment for wilful attempt to evade tax – Foreign asset – Prosecution – Pendency of appeal before CIT(A) – Criminal provision of sections 50 and 51 could not have a retrospective effect – Stay of criminal proceedings- Notice was issued to Advocate General regarding petition filed by petitioner and stay granted earlier to be extended till next date of hearing . [ S. 51 , Income -tax Act , 1961 , S.276C , Art . 226 ]

A show-cause notice was issued under sections 50 and 51 of Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 on petitioner based on assessment made against him by Deputy Director of Income-tax . Petitioner challenged said notice on ground that since his civil appeal against said assessment was pending before Commissioner (Appeals), it would be premature at this stage to take any criminal action – He further filed a petition challenging vires of certain sections of Black Money (Undisclosed Foreign Income & Assets) and Imposition of tax Act, 2015 on ground that since said act came into force in year 2015 whereas alleged transactions were of assessment year, 2006 and 2010-11, criminal provision of sections 50 and 51 could not have a retrospective effect High Court ordered stay of criminal proceedings pursuant to impugned show-cause notice until respondent had made their submissions sought by assessee in reply to show-cause notice . Notice is  issued to Advocate General regarding  and stay granted earlier to be extended till next date of hearing . (AY.2019-20)