Overview
- The Bombay High Court admitted Anil Ambani’s writ petition and ordered that no coercive action, including prosecution or penalties under the Black Money Act, be taken while the petition is pending.
- Tax authorities have alleged Ambani held undisclosed funds of about Rs 814.27 crore in two Swiss accounts and assessed a tax liability near Rs 420.29 crore.
- The Income Tax Department identified Ambani as an economic contributor and beneficial owner of offshore entities called Diamond Trust (Bahamas) and Northern Atlantic Trading Unlimited (BVI) and has proposed prosecution under sections that carry up to 10 years’ jail and fines.
- Anil Ambani argues the 2015 Black Money Act cannot be applied retrospectively to transactions from assessment years before 2015, and the court has allowed his appeal to proceed before the Commissioner of Income Tax (Appeals).
- The bench asked the central government to file an affidavit and will hear Ambani’s challenge together with other petitions, a consolidation that could decide how the law applies to pre-2015 offshore claims and affect parallel civil and criminal tax proceedings.