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Informist, Wednesday, Jun. 10, 2026

 

NEW DELHI – The Bombay High Court has said no coercive action, including prosecution and penalty, shall be taken against Anil Dhirubhai Ambani Group Chairman Anil Ambani, until it hears the petitioner's challenge against certain provisions of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. The tax authorities have alleged that Ambani evaded INR 4.20 billion in taxes on INR 8.14 billion held in two Swiss Bank accounts.

 

The court said that since an assessment order has already been passed in the case, and Ambani has challenged it before the commissioner of income tax, his appeal can proceed and orders can be passed thereon, but no coercive action shall be taken. The court placed Ambani's plea with similar cases where provisions of the 2015 Act have been challenged and asked the government to file its response on his plea.

 

Ambani had said sections 3(1), 50, 51, 59, and 72C of the 2015 Act are "ultra vires" the Constitution. The industrialist said the Black Money Act came into force in 2015 while the transactions under scrutiny pertain to the assessment years 2006-07 (Apr-Mar) and 2010-11. He has argued that the provisions of the 2015 law cannot be applied retrospectively.

 

The income tax department had said Ambani was an "economic contributor as well as beneficial owner" of a Bahamas-based entity named Diamond Trust and another company, Northern Atlantic Trading Unlimited, incorporated in the British Virgin Islands. It said Ambani had failed to disclose these foreign assets in his income tax return filings and hid details of his foreign bank accounts, thereby violating provisions of the Black Money Act.

 

The tax department had assessed the total value of the alleged undisclosed funds in the two foreign accounts at INR 8.14 billion, with the corresponding tax liability at INR 4.20 billion. According to the department, Ambani was liable to be prosecuted under sections 50 and 51 of the 2015 law, which provide for a maximum punishment of 10 years' imprisonment with a fine.  End 

 

Reported by Surya Tripathi

Edited by Rajeev Pai

 

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