Bombay High Court Orders No Coercive Action Against Anil Ambani Under Black Money Act Over Alleged Tax Evasion Of Rs 420 Crores

The Bombay High Court on Monday (June 8) directed the Income Tax Department not to take any coercive action against industrialist and Reliance Group owner Anil Ambani under the provisions of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 with regard to the alleged tax evasion of Rs 420 crore. A division bench of Justice Burgess Colabawalla and Justice Firdosh Pooniwalla noted that Ambani has challenged the constitutional validity of some provisions of the Black Money Act and besides him, few other petitions too have assailed the said law and are pending to be heard."As far as interim relief is concerned, we direct that since the Assessment Order is already passed, and the Petitioner has already filed an Appeal before the CIT(A), the said Appeal can proceed and orders can be passed thereon. However, we clarify that no coercive action shall be taken against the Petitioner, including that of prosecution and penalty, till the hearing and final disposal of this Writ Petition," the judges said in the order.Notably, Ambani had filed the instant plea in 2022, challenging the vires of the Black Money Act regarding retrospective criminalisation. He claimed that the IT department has been taking action against him for transactions which relate back to the year 2006-2007 (i.e. 10 years before the promulgation of the BM Act with effect from July 1, .2015), and the year 2012-13.Ambani's plea therefore, sought quashing of two Income Tax prosecution notices issued to him for alleged non-disclosure of money in two Swiss Bank Accounts amounting to approximately Rs. 814 crore and a tax evasion of Rs. 420 crore. The notices were stayed by the High Court in September 2022.The show cause notices were issued on August 8, 2022, under sections 50 and 51 of the Black Money Act, alleging Tax Evasion of nearly Rs. 420 crore.Apart from seeking quashing of the notice, Ambani had also challenged the vires of section 3(1), sections 50,51,59 and 72C of the BM Act allowing retrospective application as being ultra vires and violative of Articles 14, 20 and 21 of the Constitution."That provisions of the BM Act, which came into force with effect from 1st July 2015, cannot be invoked retrospectively to tax the value of any alleged undisclosed foreign asset, which may have existed prior to its coming into force on 1st July 2015," the plea stated.In January 2023, the High Court had issued notice to the Attorney General of India, as Ambani's plea challenged the constitutional validity of the Black Money Act. Now, with a direction to the IT department not to take any coercive steps against Ambani under the Black Money Act, the bench has ordered his plea to be clubbed along with the other writ petitions that too have assailed the vires of the Act and has posted all the petitions for hearing final arguments. Appearance:Senior Advocate Prakash Shah along with Advocates Mufaddal Paperwala and Prerana Wagh instructed by M/s. Crawford Bayley & Co. appeared for Anil Ambani.Advocate Akhileshwar Sharma represented the IT Department. Case Title: Anil Dhirajlal Ambani vs Union of India (Writ Petition 5321 of 2022)Citation: 2026 LiveLaw (Bom) 278Click Here To Read/Download Order

Bombay High Court Orders No Coercive Action Against Anil Ambani Under Black Money Act Over Alleged Tax Evasion Of Rs 420 Crores

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Bombay High Court Orders No Coercive Action Against Anil Ambani Under Black Money Act Over Alleged Tax Evasion Of Rs 420 Crores

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