Assessees were directors in companies, Glearing Snow World wide (GS) and  Oriental Success Universal Corporation Ltd (OS) which were incorporated as British Virgin Island(BVI) companies in Singapore on 17-3-2008 and 12-5-2009. Thereafter, OS-company opened a bank account in Singapore bank and certain amount was credited in said corporations accounts. After closure of financial year, bank account was closed and subsequently, both companies were struck off at BVI. Revenue took recourse to section 72.  Revenue registered a complaint against assessee invoking section 200 of Cr.P.C on ground that assessee had denied their investments, interests, beneficial ownership of entities and beneficial ownership of bank account maintained in Singapore in their statements recorded under section 131 of IT Act, 1961 on 10-5-2015 and 17-3-2017. High Court held that since all facts that became offences were alleged to have happened five years prior to BMI Act coming into force and law, as on date alleged, was not law of such disclosure of assessment, non-disclosure of an assessment of tax return for year 2007-08 or 2009-10 could not be used to criminally prosecute assessees. High Court further held that since prosecution initiated could not pass muster under article 20 of Constitution of India, criminal law could not be set into motion against assessees.  On SLP  it was noted that in criminal petition, there was no challenge to validity of section 72(c). Accordingly  SLP was to be granted against order of High Court. Observations of the High Court in para 15  of the  judgment, the High Court has observed thus:

“15. xxx

xxx Therefore, the criminal law cannot be set into motion against the petitioners in the aforesaid facts of the case, as it cannot pass muster of Article 20 of the Constitution of India. A caveat, this Court is considering the criminal liability fastened upon the petitioners by the prosecution including under Section 72(c) of the Act and the consideration has led to an unmistakable conclusion that it falls foul of Article 20 of the Constitution of India. The Special enactment is a statute. Article 20 comes under Chapter III of the Constitution of India, a fundamental right. Constitution of India is not a statute. It is the fountain head of all statutes including the special statute. Therefore, the rigour of any provision of the Act should pass muster of Article 20 of the Constitution of India and it fails to pass such muster in the case at hand and the failure leads to obliteration of the crime against the petitioners. “The aforesaid part of the impugned order will remain stayed. (AY-2019-20)