Bombay High Court directed the Income Tax Department not to take any action till March 17 on penalty notices issued to Reliance ADAG group chairman Anil Ambani under the Black Money Act for alleged tax evasion.
A bench of Justices G S Patel and Neela Gokhale passed the order while hearing a petition filed by Ambani challenging a show-cause notice issued to him under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. .
The Income Tax Department has issued him the show-cause notice for alleged tax evasion of Rs 420 crore. Senior Advocate Rafique Dada, appearing for Ambani, on Friday told the court that the Income Tax department has issued penalty notices in furtherance of the show-cause notice.
He sought to challenge the penalty notices and also asked permission to amend the petition. The court allowed it and directed the I-T department not to take any action till the next hearing on March 17.
Earlier, the High Court had protected Ambani from any coercive action on the show-cause notice by way of ad-interim relief on September 26, 2022.
The I-T department issued a notice to Ambani on August 8, 2022, for allegedly evading ₹ 420 crore in taxes on undisclosed funds worth more than ₹ 814 crore held in two Swiss bank accounts.
As per the notice, Ambani was liable to be prosecuted under sections 50 and 51 of the Black Money (Undisclosed Foreign Income and Assets) Imposition of Tax Act of 2015 which stipulates a maximum punishment of 10 years' imprisonment with a fine.