2012 (8) TMI 1196 - HC - Income Tax

Summary

Issues involved: Disposition of money in foreign accounts, disagreement on nature of funds, jurisdiction of Special Judge, procedure for bringing money back to India.

The High Court of Delhi, in a case involving the disposition of funds held in foreign accounts, addressed the disagreement over whether the money in question was illicitly obtained or constituted legitimate income. The Court directed that the funds, sought by both the petitioner and the Income Tax Department, could be repatriated to India following due procedure. The Additional Solicitor General proposed that upon arrival, the money should be placed in a fixed deposit with a nationalized bank in the name of the Court. The Income Tax Department sought the repatriation of funds held in the petitioner's accounts in the UK, as the petitioner had declared these funds as her income and a substantial tax amount was due. All parties agreed that the funds should first be brought to India, with further directions to be issued by the Special Judge regarding their distribution. The petitioner's senior counsel consented to these arrangements, allowing the petitioner to assert her claims in accordance with the law, which would be considered by the Special Judge at the appropriate juncture.

The Court, with the consensus of all parties involved, disposed of the revision petition by overturning the impugned order of the Special Judge. The Special Judge was tasked with issuing orders for the repatriation of funds from specific accounts held by the petitioner and her company in the UK to the State Bank of India in Delhi, in the name of the Court. Upon receipt of the funds, the Special Judge was granted the discretion to determine their allocation, considering the competing claims of the petitioner, the CBI, and the Income Tax Department. The Court emphasized the need for expeditious completion of the entire process, ensuring a swift resolution to the matter.