9911796707
TMI Blog2025 (2) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... d Assets) and Imposition of Tax Act, 2015 with effect from 01.07.2015. Therefore, continuance of the proceedings under the provisions of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 cannot be countenanced. Court taking note of the above by its Order [2016 (7) TMI 402 - MADRAS HIGH COURT] has clearly held that merely because the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 came into force would not be a bar on the respective petitioners to settle the dispute under Chapter XIX-A of the Income Tax Act, 1961. Court also took note of the Explanatory Note in Circular No.12 of 2015 dated 02.07.2015 of the Central Board of Direct Taxes to substantiate the Order dated 10.07.2015 of the Settlement Commission. Thus, the continuance of the proceedings under the Impugned Notices dated 27.02.2018 cannot be countenanced. It would defeat from the purpose of Chapter XIX-A of the Income Tax Act, 1961. It would have been different if the petitioner had not filed Return of Income and had also operate to settle the dispute under Chapter XIX-A of the Income Tax Act, 1961. Since the dispute has been settled under Chap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income Tax Act, 1961. 6. Under these circumstances, the respective petitioners approached this Court in W.P.No.22216 of 2015 and W.P.No.22219 of 2015. By an Order dated 21.06.2016, this Court was pleased to allow the above Writ Petitions with the following observations:- "7. In the light of the above stand taken which is based on the Explanatory Note dated 02.07.2015 issued in Circular No.12 of 2015, as the Black Money (Undisclosed Foreign Income Tax and Assets) and Imposition of Tax Act, 2015 comes into effect from 01.07.2015 and the petitioners had filed their Return of Income on 21.05.2015 and notice was issued under Section 148 of the Income Tax Act by the Assessing Officer on 29.05.2015 which is before coming into effect of the provisions of the Black Money Act, 2015, the applications submitted by the petitioners before the Commission are maintainable. 8. Accordingly, the Writ Petitions are allowed and the impugned orders are set aside and the petitioners are directed to file an application before the Income Tax Settlement Commission, which shall be considered by the Commission in accordance with the provisions of the Act. No costs. Consequently, connected Miscellaneou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rejoinder was also filed by the respective petitioners. All these are before the Orders were passed by the Interim Board of Settlement-II on 26.08.2022 accepting the case of the respective petitioners under Chapter XIX-A of the Income Tax Act, 1961. 14. It is noticed that the Order passed by the Interim Board of Settlement-II on 26.08.2022 has also been accepted by the Department and a giving effect order has also been passed on 20.09.2022 and 26.09.2022 for the respective writ petitioners. 15. In the Additional Counter Affidavit dated 11.12.2014 filed by the respective petitioners, it has been stated that the Deputy Director of Income Tax (Investigation) the first respondent herein had issued notice under Section 10(1) of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 on 27.02.2018 inquiring about the investments made abroad. Subsequently, the Interim Board of Settlement had passed the Order on 30.06.2022 and the assessee claims that the assets held abroad have been declared before the Interim Board of Settlement and have been offered to tax. 16. According to the respondents, as per Section 4 of the Black Money (Undisclosed Foreign Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... investments/income from the assets in the said Companies. 22. It is in this background, the proceedings initiated against the respective petitioners under Section 148 of the Income Tax Act, 1961 on 29.05.2015 which have ultimately culminated in the Order of the Interim Board of Settlement accepting the cases of the respective petitioners for settling the dispute under Chapter XIX-A of the Income Tax Act, 1961 vide Order dated 26.08.2022. 23. The Order of the Interim Board of Settlement has also been implemented the case of the respective petitioners vide the following 2 orders as detailed below:- W.P.No. Date Document/Event & Description Relevant Act/Order/Notice No. Page 1153 and 1159 of 2021 20.09.2022 Order from ACIT giving effect to order of IBS for the Assessment Year 2005-2006 to 2014-2015 Settlement Application No.TN/CN51/2015-16/34-IT 1 (Add typed set) 1162 and 1164 of 2021 26.09.2022 Order from ACIT giving effect to order of IBS for the Assessment Year 2005-2006 to 2014-2015 Settlement Application No.TN/CN51/2015-16/34-IT 27 (Add typed set) 24. Thus, the question is whether the Impugned Notices issued on 27.02.2018 to the respective petitioners under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... effect from 01.07.2015. 32. The Court taking note of the above by its Order dated 21.06.2016 in W.P.No.22216 of 2015 and W.P.No.22219 of 2015 has clearly held that merely because the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 came into force would not be a bar on the respective petitioners to settle the dispute under Chapter XIX-A of the Income Tax Act, 1961. 33. The Court also took note of the Explanatory Note in Circular No.12 of 2015 dated 02.07.2015 of the Central Board of Direct Taxes to substantiate the Order dated 10.07.2015 of the Settlement Commission. 34. Thus, the continuance of the proceedings under the Impugned Notices dated 27.02.2018 cannot be countenanced. 35. It would defeat from the purpose of Chapter XIX-A of the Income Tax Act, 1961. It would have been different if the petitioner had not filed Return of Income and had also operate to settle the dispute under Chapter XIX-A of the Income Tax Act, 1961. 36. Since the dispute has been settled under Chapter XIX-A of the Income Tax Act, 1961, the continuance of the proceedings under the Impugned Notices dated 27.02.2018 issued under Section 10(1) of the Black Money (Undisc ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
