Mumbai: The Bombay high court on Monday granted interim protection from prosecution or imposition of any penalty by the Income Tax (I-T) department to industrialist Anil Ambani in an alleged Rs 420-crore aggregate tax demand 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. The tax dispute related to Rs 800 crore allegedly 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 Black Money Act, alleging that they were in violation of fundamental rights under the Constitution.The HC admitted Ambani’s petition after hearing his senior counsel Prakash Shah and I-T department counsel Akhileshwar Sharma. 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. The HC had earlier questioned the I-T department as to how action could be taken in a retrospective manner against the petitioner. 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.“Ambani’s counsel earlier argued that the Black Money Act came into force in 2015, and the transactions alleged are of the assessment years 2006 and 2010-11. The criminal provisions cannot have retrospective effect, the counsel said, and placed reliance on Article 20 of the Constitution.The HC sought replies from the I-T department in four weeks. It will hear the petition now with those filed in 2018, 2019 and 2025 which raise similar issues.
