Bombay HC continues temporary stay on show-cause notice to Anil Ambani under Black Money Act

Bombay High Court continued till further orders an interim stay on show-cause notice and penalty demand issued to industrialist Anil Ambani by the Income Tax department under the Black Money Act.

A division bench of Justices Gautam Patel and Neela Gokhale posted Ambani's petition challenging the notice and penalty demand for hearing on April 28, and gave time to the IT department to file its reply.

The HC had in September 2022 granted an interim stay to the show-cause notice pending hearing. In March this year, Ambani's lawyer Rafique Dada informed the court that the department later also issued a penalty demand notice to his client. The court then granted interim stay to the demand notice too.

When the petition came up for hearing, advocate Akhileshwar Sharma, appearing for the IT department, sought two weeks to file a comprehensive affidavit in response to the amended petition. The petition has been amended adding some more IT officials as respondents and (the petitioner) has also annexed certain new documents.

The department wants time to file a comprehensive affidavit, Sharma said. The court directed that the affidavit be filed by April 21. The petition shall be listed for hearing on April 28. The interim orders passed earlier stay on the show-cause notice and the penalty demand shall continue till further orders, the bench said. 

The department charged Ambani with wilful evasion, saying he intentionally did not disclose his foreign bank account details and financial interests. Ambani in his petition claimed that the Black Money Act was enacted in 2015 and the alleged transactions were of assessment years 2006-2007 and 2010-2011.