2024 (8) TMI 1306 - SCH - Income Tax

Offence punishable u/s 50 of the Black Money Act - non-disclosure of foreign assets and false statements made by the petitioners - petitioners, office bearers of certain business establishments of two British Companies - The Act came into force on 01-07-2015, and the petitioners were summoned and assessed u/s 10 of the Act in 2018 HELD THAT - As in the Criminal Petition, there was no challenge to the validity of Section 72(c) of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. Issue notice on the prayer for interim relief returnable on 20th September, 2024. As decided by HC 2024 (6) TMI 943 - KARNATAKA HIGH COURT criminal law cannot be set into motion against the petitioners in the aforesaid facts of the case, as it cannot pass muster of Article 20 of the Constitution of India. A caveat, this Court is considering the criminal liability fastened upon the petitioners by the prosecution including under Section 72(c) of the Act and the consideration has led to an unmistakable conclusion that it falls foul of Article 20 of the Constitution of India. The Special enactment is a statute. Article 20 comes under Chapter III of the Constitution of India, a fundamental right. Constitution of India is not a statute. It is the fountain head of all statutes including the special statute. Therefore, the rigour of any provision of the Act should pass muster of Article 20 of the Constitution of India and it fails to pass such muster in the case at hand and the failure leads to obliteration of the crime against the petitioners. The aforesaid part of the impugned order will remain stayed.

Summary

The Supreme Court allowed exemption from filing a certified copy of the judgment, granted leave, and rejected permission to file a lengthy list of dates. Notice was issued for interim relief on September 20, 2024. The Court observed that the criminal law cannot be applied due to Article 20 of the Constitution of India, leading to the stay of that part of the order.