Temporary stay on show-cause notice to Anil Ambani under Black Money Act to continue: Bombay HC

The Bombay High Court on Wednesday continued till further orders an interim stay on showcause notice and penalty demand issued to industrialist Anil Ambani by the Income Tax department under the Black Money ActA division bench of Justices Gautam Patel and Neela Gokhale posted Ambanis petition challenging the notice and penalty demand for hearing on April 28 and gave time to the IT department to file its replyThe HC had in September 2022 granted an interim stay to the showcause notice pending hearingIn March this year Ambanis lawyer Rafique Dada informed the court that the department later also issued a penalty demand notice to his clientThe court then granted interim stay to the demand notice tooOn Wednesday when the petition came up for hearing advocate Akhileshwar Sharma appearing for the IT department sought two weeks to file a comprehensive affidavit in response to the amended petitionThe petition has been amended adding some more IT officials as respondents and the petitioner has also annexed certain new documents The department wants time to file a comprehensive affidavit Sharma saidThe court directed that the affidavit be filed by April 21Also Read Bombay High Court allows death row convict to attend daughters weddingThe petition shall be listed for hearing on April 28 The interim orders passed earlier stay on the showcause notice and the penalty demand shall continue till further orders the bench saidThe IT department issued a notice to Anil Ambani on August 8 2022 for allegedly evading Rs 420 crore in taxes on undisclosed funds of more than Rs 814 crore held in two Swiss bank accountsThe industrialist was liable to be prosecuted under Sections 50 and 51 of the Black Money Undisclosed Foreign Income and Assets Imposition of Tax Act of 2015 which prescribes a maximum sentence of 10 years with fine the IT notice saidThe department charged Ambani with wilful evasion saying he intentionally did not disclose his foreign bank account details and financial interestsAmbani in his petition claimed that the Black Money Act was enacted in 2015 and the alleged transactions were of assessment years 20062007 and 20102011The provisions of the Act cannot have retrospective effect he arguedAccording to the IT departments notice Ambani was an economic contributor as well as beneficial owner of Bahamasbased Diamond Trust and British Virgin Islandsincorporated Northern Atlantic Trading Unlimited NATUHe failed to disclose these foreign assets in his income tax return ITR filings and hence violated the Black Money Act it saidThe act was brought in by the Narendra Modi government soon after it came to power in 2014IT officials assessed the total value of undisclosed funds in the two Swiss Bank accounts at Rs 8142795784 Rs 814 crore and tax payable on this amount at Rs 4202904040 Rs 420 croreThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever