Bombay HC issues notice to AG on Anil Ambani plea challenging provisions of Black Money Act

Bombay HC issues notice to AG on Anil Ambani plea challenging provisions of Black Money Act

A division bench of Justices Gautam Patel and SG Dige questioned the income tax authorities on how it could criminalise a certain act with retrospective effect.

Urvi MahajaniUpdated: Monday, January 09, 2023, 07:45 PM IST
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Bombay HC issues notice to AG on Anil Ambani plea challenging provisions of Black Money Act |

The Bombay High Court on Monday issued notice to the Attorney General of India on a plea filed by industrialist Anil Ambani challenging the income tax proceedings initiated against him seeking to prosecute him under the Black Money Act (BMA). 

HC questions IT authorities

A division bench of Justices Gautam Patel and SG Dige questioned the income tax authorities on how it could criminalise a certain act with retrospective effect.

“A person conducts himself in a certain manner, you criminalise it and that too in a retrospective manner, how is that allowed!” exclaimed Justice Patel.

He further added: “Suppose for years, I have claimed certain deductions, you come up with an act saying it is illegal, and going back 20 years!.. You come back and say that I claimed deduction on books outside your jurisdiction and plus held it criminal.”

Calling it an absurd decision, justice Patel said: “You are saying that I should have known what the government is to do after 10 years. This is the most simple and absurd example.”

Next hearing on February 20

The bench noted that the industrialist has challenged the vires of the Black Money Act and hence notice has to be formally issued to the Attorney General. The HC has kept the matter for hearing on February 20. 

On September 26, the HC had restrained the Income Tax department from taking any coercive action against Ambani on his plea challenging the coercive action proposed to be initiated by the IT Department. The HC had also asked the IT department to file a reply to the plea. 

Ambani has challenged notice issued by IT dept

Ambani had challenged the show-cause notice issued to him by the I-T Department on Aug 8, 2022, for allegedly evading Rs420 crore in taxes on undisclosed funds amounting to Rs814 crore held in two Swiss bank accounts. 

It had charged Ambani with "wilful" evasion of tax, saying he "intentionally" did not disclose his foreign bank account details and financial interests to Indian tax authorities.

The industrialist's plea said that the alleged transactions relate to assessment years 2006-07 and 2010-11 whereas the law was enacted in 2015 and has no retrospective effect. 

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