2021 (8) TMI 1296 - HC - Income Tax

Black Money - Application seeking suspension of the look-out circular ( LOC ) so as to enable him to travel to US - It is the case of the petitioner that the LOC against him was issued in 2019 at the behest of respondent no.4, which fact came to his knowledge only on 05.11.2019, when he was stopped from boarding a flight to Dubai at the New Delhi International Airport - HELD THAT - The fact that the petitioner had, on earlier occasions, been granted permission to go abroad, albeit for shorter periods when he duly returned back to India, is undisputed. It is also undisputed that the petitioner, who has already obtained degrees in B.Sc and M.Sc from prestigious universities abroad, has now secured admission at the Harvard Kennedy School, John F. Kennedy School of Government for undergoing a two-year MPA course. In light of the fact that the petitioner s father is willing to furnish an undertaking not to leave the country while the petitioner is abroad, do not find the petitioner evidencing any intent of absconding from India. The question of whether the LOC issued in 2019 can now stand in the way of the petitioner travelling abroad is yet to be determined. No doubt, the respondent claims to have already filed a complaint against the petitioner for an offence under the Black Money Act; however, as on date, no cognizance has been taken of the said complaint and therefore, I am inclined to grant permission to the petitioner to travel to US for a period of two-years to attend the MPA Course, subject to the following conditions (i) The petitioner will keep the respondents informed about his travel itinerary from time to time; (ii) He will not tamper with the evidence or contact any person who is a part of the investigation; (iii) The petitioner s father will file an undertaking before the Registrar General of this Court that he will not leave the country as long as the petitioner is abroad; (iv) The petitioner, besides the security already furnished by him in respect of AG-059 (Old No.FLG 04), Phase-I, Ansal Plaza, Greater Noida, UP and the security of ₹ 5 Lakhs - which is already lying with the Registrar General of this Court in terms of order dated 22.02.2021, will furnish a security to the satisfaction of the Registrar General of this Court for a further sum of ₹ 1 Crore in the form of an FDR or a deposit. (v) The petitioner will appear before any office of the Indian Embassy in the US, once in every eight weeks. It is, however, made clear that this order will not come in the way of the concerned Additional Chief Metropolitan Magistrate from passing any orders requiring the petitioner s presence in the country; in which case, it will be for the petitioner to move an appropriate application before the concerned Court, which will be considered in accordance with law.

Summary

Issues:
- Application for suspension of look-out circular to travel to the US
- Compliance with conditions for previous travel permissions
- Opposition based on pending prosecution under the Black Money Act
- Argument regarding petitioner's intention to evade investigation
- Granting permission to travel abroad for higher education

Analysis:
1. The petitioner, a young man seeking to travel to the US for a two-year Master in Public Administration course at Harvard Kennedy School, filed an application to suspend the look-out circular (LOC) issued against him in 2019. The petitioner, having completed his education from prestigious universities abroad, had been granted permission to travel abroad on three earlier occasions, complying with all conditions, including providing security. The petitioner's counsel argued that the LOC had expired, and the petitioner had been cooperating with investigations.

2. The opposition contended that the petitioner and his father faced prosecution under the Black Money Act, a cognizable and non-bailable offense. A complaint had been filed, and the proceedings were ongoing. Concerns were raised that allowing the petitioner to travel could impact the pending legal process. In response, the petitioner's counsel highlighted the family's deep roots in India and proposed an undertaking from the petitioner's father to ensure their presence in the country during the petitioner's absence for studies.

3. The court considered the submissions, noting the petitioner's academic achievements and past compliance with travel conditions. Acknowledging the willingness of the petitioner's father to provide an undertaking, the court found no evidence of the petitioner intending to abscond. While recognizing the pending complaint under the Black Money Act, the court granted permission for the petitioner to travel to the US for his education, subject to specified conditions, including regular reporting of travel details, non-interference with the investigation, and additional financial security.

4. The court's order allowed the petitioner to travel for the two-year course but emphasized that it would not prevent the Additional Chief Metropolitan Magistrate from issuing orders requiring the petitioner's presence in India. The petitioner was directed to cooperate with the authorities in all ongoing proceedings. The application was disposed of with the specified conditions, and the case was listed for further proceedings on a specific date.