BRIEF FACTS
In the present Writ Petition, the Petitioner, namely, Tabasum Mir, has contended that she is a beneficiary of a Trust which was created and established abroad. The Petitioner brought benefit/money of her share in the country upon permission granted by the Reserve Bank of India. In the meantime, Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (hereinafter referred to as “the Act of 2015”) has been enforced with effect from 1st of April 2015 or 1st of July 2015.
In view of the said Act, a notice under Section 10(1) and thereafter under Section 10(2) was issued requiring certain information from the Petitioner. The said notice was duly replied by the Petitioner, but till date, no order of assessment as contemplated under Section 10 has been passed against the Petitioner. At the same time, a further show cause notice dated 18th of March 2021 has been issued requiring the Petitioner to show cause why in respect of some of the assets, the Petitioner should not be taxed under the Act and penalties and prosecution be launched against her.
The Court, while issuing notice to the other side, in terms of separate orders, directed the assessing authority to proceed and pass an order of assessment pursuant to the show cause notices dated 6th of July, 2018, 25th of July, 2018 and 20th of November, 2019, but not prosecute and impose any penalty upon the petitioners on the basis of the impugned show cause notice dated 18th of March 2021. Thereafter, it seems that pursuant to the aforesaid order passed by this Court, the assessing authority appears to have proceeded ahead and passed the assessment order as well as the notice of imposing penalty upon the Petitioners.
The Petitioner, thereafter, filed another Writ Petition, wherein she has challenged the proceedings initiated against her by the Respondent assessing authority in terms of the provisions of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 including the impugned assessment Order dated 31st of March, 2021 and impugned notice of demand dated 29th of March, 2021, as being without jurisdiction, thus void-ab-initio and non-est in law.
COURT’S OBSERVATION
The Jammu and Kashmir and Ladakh High Court observed that money stashed abroad by evading tax could be used in ways which could threaten National security. It further observed that Stashing away of black money abroad by some people with the intent to evade taxes has been a matter of deep concern to the nation. The bench further stated that evasion of tax robs the nation of critical resources necessary to undertake programs for social inclusion and economic development. It also puts a disproportionate burden on the honest taxpayers as they have to bear the brunt of higher taxes to make up for the revenue leakage caused by evasion.
The Court dismissed the batch of petitions challenging orders and notices passed by the authorities under Black Money (Undisclosed Foreign Income and Assets) and
and Imposition of Tax Act (the Act of 2015).
The bench also stated that the Act of 2015 provides complete machinery for the person aggrieved of any action taken by the Assessing Officer and the said person could not be permitted to abandon that machinery and to invoke the jurisdiction of the High Court under Article 226 of the Constitution when he had the adequate remedy open to him by way of an appeal to the Commissioner of Appeals.
CASE: Tabasum Mir v. Union of India
CITATION: WP(C) No. 802/2021
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