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The Bombay High Court (HC) has granted interim extortion from prosecution and punishment to industrialist Anil Ambani successful an alleged taxation evasion case, portion admitting his petition challenging the law validity of provisions of the Black Money Act. Mr. Ambani, successful his plea, said definite provisions of the (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, were "ultra vires" (beyond the powers/violative) to the Constitution of India.
A Bench of Justices B.P. Colabawalla and Firdosh Pooniwalla connected Tuesday (June 10, 2026) noted that determination are different petitions filed successful HC against the Act and admitted Mr. Ambani's plea, which volition beryllium taken up for last proceeding successful owed course. The tribunal directed the Union authorities to record its affidavit successful effect to the plea.
The HC noted that an appraisal bid against Mr. Ambani has already been passed and that helium has filed an entreaty earlier the Commissioner of Income Tax (Appeals). "The said entreaty tin proceed and orders tin beryllium passed thereon. However, we clarify that nary coercive enactment shall beryllium taken against the petitioner, including that of prosecution and penalty, till the proceeding and last disposal of this writ petition," the HC said.
The Income Tax Department issued a announcement to Mr. Ambani connected August 8, 2022, for allegedly evading ₹420 crore successful taxes connected undisclosed funds of much than ₹814 crore held successful 2 Swiss slope accounts. As per the Department's notice, Mr. Ambani was liable to beryllium prosecuted nether Sections 50 and 51 of the Black Money Act, which stipulates a maximum punishment of 10 years imprisonment with a fine. The Department has charged Mr. Ambani with "wilful" evasion, claiming helium "intentionally" did not disclose his overseas slope relationship details and fiscal interests to Indian taxation authorities.
Mr. Ambani, successful his petition, claimed that the Black Money Act was enacted successful 2015, and the alleged transactions are of appraisal years 2006-2007 and 2010-2011. As per his plea, the provisions of the Act cannot person a retrospective effect.
According to the I-T Department's notice, Mr. Ambani was an "economic contributor arsenic good arsenic beneficial owner" of a Bahamas-based entity called 'Diamond Trust' and different institution called Northern Atlantic Trading Unlimited (NATU), which was incorporated successful the British Virgin Islands (BVI).
The Department alleged that Mr. Ambani "failed to disclose" these overseas assets successful his income taxation instrumentality (ITR) filings and hence contravened provisions of the Black Money Act. The full worth of the undisclosed funds successful the 2 accounts has been assessed by taxation officials astatine ₹814,27,95,784, and taxation payable connected this magnitude astatine ₹420,29,04,040.
