A search and seizure operation was conducted on the assessee’s premises on 27 April 2016, where incriminating evidence established that the assessee held undisclosed foreign assets, including bank accounts and properties. It was alleged that the assessee attempted to backdate and fabricate documents to alienate foreign assets and evade tax under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (‘Black Money Act’). The assessee was summoned under section 51(1) for willful attempt to evade tax. The assessee challenged the criminal complaint, arguing that prosecution could not be initiated without completing the assessment.

The Hon’ble Delhi High Court held that prosecution under section 51 is not dependent on the completion of assessment since the offence stands completed as soon as the conditions under section 51(3) are fulfilled. The Court noted that the search operation and statements under section 131(1A) established that the assessee held undisclosed foreign assets and had attempted to restructure ownership through backdating and fabrication of documents. The Court also rejected the assessee’s claim that prosecution was premature without assessment, holding that assessment and prosecution are independent. The petition was dismissed as devoid of merit.(AY. 2012-13)