The Bombay High Court issued Rule in a writ petition filed by Anil Ambani challenging the constitutional validity of certain provisions of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, and granted interim protection against coercive action pending final adjudication of the matter. A Division Bench comprising Justice B. P. Colabawalla and Justice Firdosh P. Pooniwalla directed that no prosecution or penalty proceedings be initiated against the petitioner until disposal of the writ petition.

The petitioner approached the High Court contending that certain provisions of the Black Money Act are ultra vires the Constitution of India. During the hearing, it was brought to the Court’s notice that similar constitutional challenges to the provisions of the Black Money Act were already pending before the High Court in other writ petitions where Rule had been issued and interim relief had been granted.

Taking note of the pendency of similar matters, the Court considered it appropriate to admit the petition and issued Rule. The respondents were directed to file their affidavit-in-reply within four weeks.

As regards interim relief, the Court noted that an assessment order had already been passed against the petitioner and that an appeal was pending before the Commissioner of Income Tax (Appeals).

“The said Appeal can proceed and orders can be passed thereon.”

While permitting the appellate proceedings to continue, the Court granted protection against any coercive measures during the pendency of the constitutional challenge.

“No coercive action shall be taken against the Petitioner, including that of prosecution and penalty, till the hearing and final disposal of this Writ Petition.”

The Bench further directed that the writ petition be heard along with other pending petitions raising the same or similar constitutional issues relating to the Black Money Act.

Thus, the High Court issued Rule, directed filing of replies by the respondents, allowed the appellate proceedings before the CIT(A) to continue, and granted interim protection restraining the authorities from taking coercive action, including prosecution and penalty proceedings, until the final disposal of the writ petition.

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