2025 (1) TMI 1193 - SCH - Income Tax

Permission to take all contentions legal as well as factual available to the petitioner herein before the concerned authority under the provisions of the Black Money - as submitted that consequently the impugned order passed by the Delhi High Court 2024 (11) TMI 649 - DELHI HIGH COURT may not come in the way of the petitioner raising all such contentions that are available to him before the concerned authority. Assessment under the Black Money Act - Miscellaneous Application filed u/s 4 10 and 12 of the Fugitive Economic Offenders Act before the Court of Ld. Special Judge - as perused the impugned order passed by the High Court 2024 (11) TMI 541 - DELHI HIGH COURT wherein a challenge was made to Summoning Order and the proceedings emanating therefrom in a petition filed u/s 482 of the Code of Criminal Procedure 1973 (CrPC) seeking quashing of the Misc. Application filed under Sections 4 10 and 12 of the Fugitive Economic Offenders Act 2018 - HELD THAT - We dispose of this Special Leave Petition by reserving liberty to the petitioner herein to raise all contentions legal as well as factual available to the petitioner herein before the concerned authority If such contentions are raised by the petitioner herein the same shall be considered in accordance with law on their own merits and having regard to the provisions of the 2018 Act referred to above. When the relevant contentions are raised by the petitioner herein before the concerned authority the same shall be considered on their own merits and without being influenced by any of the observations made by the High Court in the writ petition disposed of by the High Court.

Summary

ISSUES PRESENTED and CONSIDERED

The Court considered the following core legal issues:

1. Whether the petitioner should be permitted to raise all legal and factual contentions under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, before the concerned authority, without being influenced by the impugned order of the Delhi High Court.

2. Whether the petitioner should be granted additional time to file a statutory appeal against the Assessment Order, and if so, whether the issue of limitation should be waived.

3. Whether the petitioner is entitled to raise all contentions under the Fugitive Economic Offenders Act, 2018, before the concerned authority, despite the High Court's observations in its order.

ISSUE-WISE DETAILED ANALYSIS

Issue 1: Permission to Raise Contentions under the Black Money Act

- Relevant Legal Framework and Precedents: The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, governs the taxation of undisclosed foreign income and assets. The Act provides a framework for assessing and taxing such income and assets.

- Court's Interpretation and Reasoning: The Court recognized the petitioner's right to present all relevant legal and factual contentions under the Act before the appropriate authority. The Court emphasized that these contentions should be considered on their own merits, uninfluenced by the Delhi High Court's order.

- Key Evidence and Findings: The petitioner sought to ensure that the High Court's order would not preclude him from raising all available contentions under the Act.

- Application of Law to Facts: The Court applied the principles of fairness and due process, allowing the petitioner to fully exercise his rights under the Act.

- Treatment of Competing Arguments: The respondent did not oppose the petitioner's request, and the Court found no reason to restrict the petitioner's ability to present his case.

- Conclusions: The petitioner is permitted to raise all contentions under the Black Money Act before the concerned authority, and these will be considered on their merits.

Issue 2: Extension of Time for Filing Statutory Appeal

- Relevant Legal Framework and Precedents: The statutory appeal process under the relevant tax laws typically includes strict timelines for filing appeals. However, courts may grant extensions in certain circumstances.

- Court's Interpretation and Reasoning: The Court acknowledged the legal proceedings initiated by the petitioner and the potential impact on the timeline for filing an appeal. It deemed it appropriate to grant an extension to ensure the petitioner could pursue his appellate rights.

- Key Evidence and Findings: The petitioner highlighted the procedural delays caused by ongoing legal proceedings.

- Application of Law to Facts: The Court balanced the need for procedural compliance with the petitioner's right to a fair appellate process.

- Treatment of Competing Arguments: The respondent did not object to the extension, and the Court found it reasonable to grant additional time.

- Conclusions: The petitioner is granted two weeks from the date of the judgment to file the statutory appeal, and the issue of limitation will not be raised against him.

Issue 3: Raising Contentions under the Fugitive Economic Offenders Act

- Relevant Legal Framework and Precedents: The Fugitive Economic Offenders Act, 2018, allows authorities to address economic offenses committed by individuals who evade legal proceedings by remaining outside the jurisdiction.

- Court's Interpretation and Reasoning: The Court permitted the petitioner to raise all legal and factual contentions under the Act before the concerned authority, ensuring these would be evaluated independently of the High Court's prior observations.

- Key Evidence and Findings: The petitioner sought to ensure that the High Court's observations would not prejudice his ability to raise contentions under the Act.

- Application of Law to Facts: The Court applied principles of fairness, allowing the petitioner to fully exercise his rights under the Act.

- Treatment of Competing Arguments: The respondent did not oppose the petitioner's request, and the Court found no reason to restrict the petitioner's ability to present his case.

- Conclusions: The petitioner is permitted to raise all contentions under the Fugitive Economic Offenders Act before the concerned authority, and these will be considered on their merits.

SIGNIFICANT HOLDINGS

- The Court established that the petitioner could raise all legal and factual contentions under the Black Money Act and the Fugitive Economic Offenders Act before the respective authorities, ensuring these would be considered on their merits, uninfluenced by previous court orders.

- The Court granted the petitioner an extension to file a statutory appeal against the Assessment Order, waiving the issue of limitation if filed within the specified timeframe.

- The Court's determinations emphasize the principles of fairness, due process, and the right to a full and fair hearing in legal proceedings.