Anil Ambani Gets Interim Protection in Tax Evasion Matter
Court admits industrialist's plea questioning constitutional validity of provisions under the Black Money Act; bars prosecution and penalty proceedings until final verdict.
Mumbai, June 11: The Bombay High Court has granted interim relief to industrialist Anil Ambani by restraining authorities from initiating prosecution or imposing penalties against him in a case linked to alleged undisclosed foreign assets, while admitting his petition challenging provisions of the Black Money Act.
A division bench comprising Justices B P Colabawalla and Firdosh Pooniwalla observed that similar petitions questioning the legislation are already pending before the court and decided to admit Ambani’s plea for detailed consideration. The Union government has been directed to file its response to the petition.
While allowing proceedings before the Commissioner of Income Tax (Appeals) to continue, the court clarified that no coercive measures, including criminal prosecution or penalty action, shall be taken against Ambani until the writ petition is finally decided.
The case stems from a notice issued by the Income Tax Department in August 2022, alleging tax liability of around Rs 420 crore on foreign funds exceeding Rs 814 crore purportedly held in Swiss bank accounts. The department has accused Ambani of deliberately failing to disclose overseas financial interests and bank accounts to Indian tax authorities.
In his petition, Ambani contended that the alleged transactions relate to assessment years 2006-07 and 2010-11, predating the enactment of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. He argued that the law cannot be applied retrospectively to transactions that occurred before it came into force.
Tax authorities have alleged that Ambani was associated with overseas entities, including Bahamas-based Diamond Trust and British Virgin Islands-incorporated Northern Atlantic Trading Unlimited (NATU), and failed to disclose these interests in his income tax filings.
The High Court is expected to hear the constitutional challenge along with other pending petitions concerning the scope and applicability of the Black Money Act.
