OArun Mammen v .DCIT (Inv) (2025) 344 CTR 398 / 248 DTR 481/ 171 taxmann.com 570 (Mad)(HC) Kandathil M. Mammem v .DCIT (Inv) (2025) 344 CTR 398 / 248 DTR 481/ 171 taxmann.com 570 (Mad)(HC) n writ court held that proceedings under the Black Money Act are intended to be directed against persons who failed to disclose foreign assets or file returns under the Income-tax Act, 1961. In the present case, the assessees had admittedly filed their return of income on 21.05.2015, i.e., prior to the coming into force of the Black Money Act w.e.f. 01.07.2015. Further, the assessees had approached the Settlement Commission and the dispute for AYs 2005-06 to 2011-12 stood settled under Chapter XIX-A of the Act. The Court noted CBDT Circular No. 12 of 2015 dated 02.07.2015 granting a one-time compliance opportunity and reiterated that the enactment of the Black Money Act did not bar settlement proceedings. Once the dispute was settled, continuance of proceedings under notices issued u/s 10(1) of the Black Money Act could not be countenanced and was liable to be quashed. (AY. 2005-06 to 2011-12)(SJ )

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

S. 10(1) : Undisclosed Foreign Assets – Assets acquired prior to commencement of the Act – Settlement Commission – Proceedings cannot continue once dispute is settled under Chapter XIX-A of the Act . [ Income -tax Act 1961 , S. 148 , 245C, Art. 226 ]