The Bombay High Court on Wednesday granted interim protection to industrialist Anil Ambani from any coercive action under the Black Money Act in connection with an alleged tax evasion case. The relief comes as Ambani challenges the constitutional validity of certain provisions of the Undisclosed Foreign Income and Assets (Imposition of Tax) Act, 2015.
Details of the Plea
In his petition filed before the high court, Ambani argued that specific sections of the Black Money Act are 'ultra vires' to the Constitution of India. He contended that these provisions violate fundamental rights guaranteed under the Constitution. The court, after hearing preliminary arguments, directed that no coercive steps be taken against him until the next hearing.
Legal Challenge
The case revolves around allegations of undisclosed foreign income and assets. Ambani's legal team asserted that the impugned provisions are arbitrary and exceed the legislative competence of Parliament. They further submitted that the Act imposes harsh penalties without adequate safeguards, making it unconstitutional.
The Bombay High Court has scheduled the next hearing for a later date, allowing both sides to present detailed submissions. The interim protection will remain in force until further orders.
This development marks a significant legal step for Ambani, who faces scrutiny under the stringent Black Money Act. The outcome of this case could have broader implications for similar challenges against the law.
