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Court News from Madras High Court

[5/6, 17:20] sekarreporter1: https://twitter.com/sekarreporter1/status/1654815488378286081?t=m5PG_f_5zUJh5jVBxPoE1A&s=08 [5/6, 17:20] sekarreporter1: [5/6, 17:17] sekarreporter1: Hon’ble ACJ and Hon’ble Justice Bharat Chakravarthy [5/6, 17:17] sekarreporter1: The proviso to Section 3(1) of the Black Money (UFIA) and Imposition of Tax Act, 2015 which enables retrospective application of chargeability to tax on undisclosed asset located outside India prior to AY 2016-17 was challenged in Writ Petitions. The First Bench of Madras High Court after hearing Senior Advocate T. Pramodkumar Chopda on 28.04.2023 was pleased to grant stay of the Assessment proceedings passed in pursuance to the aforesaid provision of the Black Money Act.

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[5/6, 17:20] sekarreporter1: https://twitter.com/sekarreporter1/status/1654815488378286081?t=m5PG_f_5zUJh5jVBxPoE1A&s=08
[5/6, 17:20] sekarreporter1: [5/6, 17:17] sekarreporter1: Hon’ble ACJ and Hon’ble Justice Bharat Chakravarthy
[5/6, 17:17] sekarreporter1: The proviso to Section 3(1) of the Black Money (UFIA) and Imposition of Tax Act, 2015 which enables retrospective application of chargeability to tax on undisclosed asset located outside India prior to AY 2016-17 was challenged in Writ Petitions. The First Bench of Madras High Court after hearing Senior Advocate T. Pramodkumar Chopda on 28.04.2023 was pleased to grant stay of the Assessment proceedings passed in pursuance to the aforesaid provision of the Black Money Act.

Writ Petition Nos.13545 & 13550 of 2023 WMP No.13225 of 2023

&

THE ACTING CHIEF JUSTICE

AND D.BHARATHA CHAKRAVARTHY,J

ORDER (Made by the Hon’ble Acting Chief Justice)

Mr.Pramod Kumar Chopda, learned Senior Counsel appearing for the petitioner contended that when the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 itself was given effect to from 01.07.2015, the Proviso to Section 3(1) of the Act runs contrary to the purpose of the Act. Section 3(1) states that there

shall be charge on every assessee for every assessment year commencing on or after the 1st day of April, 2016, subject to the provisions of this Act, a tax in respect of total undisclosed foreign income and asset of the previous year at the rate of thirty percent of such undisclosed income and assets and the proviso states that an undisclosed asset located outside India shall be charged to tax on its value in the previous year in which such asset comes to the notice of the Assessing Officer.

  1. Learned Senior Counsel further submits that in the writ petition pending before the Delhi High Court on similar issue in W.P.(Crl) No.618 of 2019, the Delhi High Court has restrained the respondents from taking/or continuing any action pursuant to the

impugned order.

  1. A.P.Srinivas, learned Standing Counsel takes notice for the

second respondent.

  1. Issue notice to the first respondent returnable by 08.06.2023. Private notice is also permitted.
  2. There shall be an order of interim stay of the impugned order

till 08.06.2023.

  1. List the matter on 08.06.2023.

(T.R., ACJ.)      (D.B.C., J.)

28.04.2023          kpl

T.RAJA, ACJ,    and

D.BHARATHA CHAKRAVARTHY,J

(kpl)

W.P.Nos.13545 & 13550 of 2023

& WMP No.13225 of 2023

28.04.2023

 

 

 

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