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The Division Bench directed the respondent not to take action against Anil Ambani in the show cause notice issued to him under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
A Division Bench of the Bombay High Court comprising Justice S.V Gangapurwala and Justice R.N Laddha, has directed the Income Tax Department, not to take any action against Anil Ambani in the show cause notice issued against him under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
The case pertains to the show cause notice issued against Anil Ambani by the Income Tax Department for the assessment carried out against Anil Ambani for the year 2019-2020. The said order is pending in an appeal before the Commissioner of Income Tax.
Senior Advocate Rafiq Dada for Anil Ambani argued before the court, that it would be premature to issue a show cause notice since the civil litigation is still pending before the appellate authority and no criminal action should be taken against the petitioner till the civil litigation is pending. He prayed before the court that the show cause notice issued should be stayed.
Further, he also argued that the Imposition of Tax Act, 2015 came in the year 2015, and the alleged transactions are from the assessment year of 2006 and 2010-2011. Therefore, while relying on Article 20 of the Constitution of India, further stated that there cannot be a retrospective operation of law, . He also submitted before the court that similar issues are pending before different High Courts and the Bombay High Court.
Since the respondent sought time to file the reply by 17 November, the division bench directed the respondent not to proceed further against Anil Ambani in the show cause notice issued against him.
Case Title: Anil Dhirajlal Ambani versus Union of India & Ors.
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