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TMI Blog2024 (7) TMI 588X X X X Extracts X X X X X X X X Extracts X X X X ..... losed is deemed to be acquired or made in the year in which notice under Section 10 is issued by the Assessing Officer. It is further submitted that accused was bound to declare the foreign assets therefore, Section 59 of the Act is applicable to accused. It is further submitted that applicant has committed the offence, therefore, prayed for rejection of the application. After having heard learned counsel for the rival parties, perusing the material and evidence available on record, Court is inclined to grant anticipatory bail to the applicant, hence application is allowed. As directed that in the event of arrest or if he surrenders in connection with the aforesaid case number and the offences, he be released on bail on furnishing a personal bond in the sum of Rs. 5,00,000/- (Rs. Five lac only) with one solvent surety of the like amount to the satisfaction of the Investigating Officer/Arresting Authority. The applicant is directed to co-operate with the Income Tax Department in investigation, inquiry or proceedings conducted by the Department, if required. He will further abide by the following conditions: (a) accused shall make himself available for interrogation by a Income Tax D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during investigation revealed that accused had foreign bank account in Singapore from financial year 2008-09 to 2014-015 pertaining to assessment years 2005-2010 to 2015-016 but in fact he has not disclosed the foreign accounts in the income tax returns during the assessment years 2009-010 to 2015-16. Statement of the accused was recorded on oath on 12.06.2017 by the department in which he had categorically denied having any foreign accounts. The accused was the sole director and signatory of the account of the company. He was duty bound to disclose the financial assets of the interest in the Schedule FA of Income Tax returns under Section 50 of Black Money Act 2015 in the financial year 2015-16 relevant to the assessment year 2016-17 but the accused did not disclose this and he committed economic offence under Black Money Act 2015. 5. Undisclosed assets of the accused was brought under tax by the application of Black Money Act for the assessment year 2018-019 vide assessment order dated 30.11.2018 by the Additional Income Tax (Central) Bhopal and on account of this reason accused is also liable to be prosecuted under Section 51 of Black Money Act for willful attempt to evade tax, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2015 applicant had no foreign assets in existence, therefore, he was not required to make any disclosure in the BM Act. 8. Learned counsel for the applicant further submitted that the Black Money Act has not been given retrospective application by the legislature, therefore, no case is made out against the applicant. The applicant has not evaded any tax, penalty or interest chargeable in the Black Money Act 2015 even prior to come into force of Black Money Act 2015. It is further submitted that it is accepted position that portfolio assets management account of the company was closed on 21.06.2013 and intimation for closing the main account was given on 21.04.2014 and the account was closed on 04.06.2014, thus the company account being the alleged foreign assets was closed prior to come into force of the BM Act, 2015. The bank accounts were closed much prior to come into force of the Black Money Act 2015 on 01.04.2016, therefore, before assessment year commencing from 01.04.2016 the company had no active bank account, therefore, no tax was chargeable under the BM Act, therefore, criminal proceedings cannot be instituted against the present applicant. He further submitted that in si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... belonging to accused then department came to know this fact that accused is having foreign bank account and having foreign income and assets but he has not disclosed to the income tax department. It is further submitted that the company was registered on 16.01.2008. This company was closed and closure certificate of the company was issued on 03.11.2015 and foreign account of the firm was closed on 21.04.2014. It is further submitted that from the inception of the aforesaid company till its closure, it was not disclosed to the income tax department and it was hidden from the income tax authority and was used as a tool to siphon illegal income from commissions to foreign company. It is further submitted that applicant was Indian resident and was required to furnish the details of foreign assets/relations with the foreign entities etc. as per scehdule FA of the ITR but he did not disclose the foreign income in the income tax return for the assessment year 2010-011 to 2016-017 filed by the applicant. 11. It is also submitted that in this regard summons were issued by the department to the accused but in reply the accused has stated that he did not have any foreign bank account, financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rashesh Manhar Bhansali Vs. Additional Commissioner of Income Tax passed on 02.11.2021 by the Income Tax Appellate Tribunal, Mumbai but judgment passed by the Tribunal is not binding on this Court. It is further submitted that there is no time barring limitation prescribed in the said Act. 13. It is further submitted that if any assets acquired or made prior to commencement of this Act which has not been disclosed is deemed to be acquired or made in the year in which notice under Section 10 is issued by the Assessing Officer. It is further submitted that accused was bound to declare the foreign assets therefore, Section 59 of the Act is applicable to accused. It is further submitted that applicant has committed the offence, therefore, prayed for rejection of the application. 14. After having heard learned counsel for the rival parties, perusing the material and evidence available on record, Court is inclined to grant anticipatory bail to the applicant, hence application is allowed . 15. It is directed that in the event of arrest or if he surrenders in connection with the aforesaid case number and the offences, he be released on bail on furnishing a personal bond in the sum of Rs. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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