MUMBAI: Bombay high court on Monday granted interim protection from prosecution or imposition of any penalty by the Income Tax Department to industrialist Anil Ambani in an alleged Rs 420 crore tax evasion case, in a petition he filed to raise a constitutional challenge to the provisions of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015—aka commonly, the Black Money Act.Ambani’s case was argued by senior counsel Prakash Shah and advocate Akhileshwar Sharma the Centre and Income Tax CommissionerThe alleged case of tax evasion related to over Rs 800 crore held in two Swiss accounts.A bench of Justices Burgess Colabawalla and Firdosh Pooniwalla passed the order while hearing Ambani’s petition which was filed in 2022 challenging the constitutional validity of provisions of the Act, alleging that they were in violation of fundamental rights under the Constitution.The HC admitted Ambani’s petition. It then added, “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 Appeal can proceed and orders can be passed thereon.’’The HC however clarified that no coercive action shall be taken against Ambani, including that of prosecution and penalty, till the hearing and final disposal of his Writ Petition.Ambani had challenged the validity of sections 3(1), 50, 51, 59, and 72C of the Black Money Act in the petitions concerned. The high court had earlier questioned the I-T Department as to how action could be taken in a retrospective manner against the petitioner.Ambani’s counsel earlier argued that Black Money Act came into force in the year 2015. The transactions alleged are of the assessment year 2006 and 2010-11. The criminal provisions cannot have retrospective effect. Reliance was placed on Article 20 of the Constitution of India which Article 20 of the Indian Constitution which provides fundamental safeguards to individuals accused of crimes, protecting them from arbitrary state action through three core tenets: protection against ex post facto laws.The bench said, “It has been brought to our notice that the constitutional validity of certain provisions of the Black Money Act have been challenged in other Writ Petitions as well, and in which Rule had already been issued and interim relief is granted.’’The HC sought replies from the IT department in four weeks. It will hear the petition now with those filed in 2018, 2019 and 2025 which raise similar issues.
