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TMI Blog2025 (2) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... mposition of Tax Act, 2015 and all further Consequential Notices dated 03.03.2020, 16.10.2020 and 26.12.2020 and for a Writ of Prohibition, to prohibit the respondents from proceeding further with the aforesaid notices issued to the respective petitioners. 3. The said Act came into force on 01.07.2015. Even prior to the Act came into force on 01.07.2015, the respective petitioners appeared to have received notices under Section 131 of the Income Tax Act, 1961 for the Assessment Years 2005-2006 to 2011-2012. Under these circumstances, the respective petitioners filed Return of Income for the Assessment Years 2005-2006 to 2011-2012 on 21.05.2015. 4. The respective petitioners opted to settle the dispute before the Income Tax Settlement Commission (ITSC) by filing Statement of Facts on 10.07.2015. This was about few days after the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 came into force with effect from 01.07.2015. 5. By an order dated 30.06.2015, the Settlement Commission rejected the applications. Under these circumstances, the respective petitioners once again filed fresh applications on 10.07.2015 before the Settlement Commission which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court ultimately allowed these Writ Appeals on 27.06.2022 and thereby allowed W.P.No.33431 of 2017 and W.P.No.33432 of 2017. Pursuant to the Order of the Division Bench of this Court in W.A.No.2629 of 2021 and W.A.No.2632 of 2021 dated 27.06.2022, the Interim Board of Settlement-II vide Order dated 26.08.2022 accepted the applications filed by the respective petitioners for settling the dispute under the provisions of the Income Tax Act, 1961. 10. Learned Senior Counsel for the petitioners would submit that the notices which have been issued to the petitioners were subject matter of the notices issued to the respective petitioners on 29.05.2015 under Section 148 of the Income Tax Act, 1961. 11. It is submitted that since the Income Tax Cases have now been settled under the provisions of the Income Tax Act, 1961 vide Order dated 26.08.2022 of the Interim Board of Settlement-II, the proceedings initiated under the Impugned Notices dated 27.02.2018 impugned in W.P.No.1153 of 2021 and W.P.No.1162 of 2021 cannot be proceeded further. 12. It is submitted that the subsequent developments which have been mentioned above have neutralized the proceedings issued in the Impugned Notices un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is submitted that the stand of the Department is based on the order of the Interim Board of Settlement even though assessment under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 results in "Nil" income, the notice issued under Section 10(1) is maintainable as penalties enumerated under Section 41 to Section 47 and prosecution as per Section 48 to Section 58 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 operate independently and both the penalty under Section 43 and prosecution under Section 50 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 squarely apply to the case of the assessee. 19. I have considered the arguments advanced by the learned Senior Counsel for the petitioners and the learned Senior Standing Counsel for the respondents. 20. The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 received the assent of the President on 26th May 2015, which came into force with effect from 01.07.2015. 21. Prior to the above, already the proceedings under Section 131 of the Income Tax Act, 1961 had been initiated against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for a limited period to those persons, who have any assets which had not been disclosed for the purpose of income tax. Thus, the proceedings under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 is directed against those who have failed to file the returns under the Income Tax Act, 1961. 28. In this case admittedly, the Return of Income was filed by the respective petitioners on 21.05.2015 which is prior to the implementation of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 with effect from 01.07.2015. 29. 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. 30. In fact, the respective petitioners applications for settling the dispute under Chapter XIX-A of the Income Tax Act, 1961 was earlier rejected by the Settlement Commission twice on 30.06.2015 and thereafter once again on 10.07.2015 which was challenged before this Court in W.P.No.22216 of 2015 and W.P.No.22219 of 2015. 31. The applications for settling the dispute under the provisions of Chapter XIX-A of the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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