'Assessment May Continue But No Final Order': Delhi High Court Issues Notice In Robert Vadra's Plea Against Black Money Act Proceedings

The Delhi High Court on Friday issued notice to the Central Government, Central Board of Direct Taxes and Tax Department authorities in Robert Vadra's Plea challenging the proceedings initiated by the Respondent Authorities under Black Money Act and also for quashing the notices issued to him under sec. 10(1) of the Act dated December 4, 2018 and December 18, 2019 respectively.

A division bench comprising of Justice Rajiv Shakdher and Justice Talwant Singh granted three weeks time to Vadra for filing replies to the notices issued to him by the authorities and also ordered that the Income Tax Department may continue with its proceedings relating to assessment but will not pass any final order.

"Petitioner will have the liberty to file reply on notices 7 May 2021 and 22 May 2021 for this purpose. Further three weeks granted to petitioner. As far as assessment proceedings is concerned, the authorities may continue with the same, however, no final order may be passed." The Court ordered.

Notice was issued to Vadra on December 4, 2018 by the income tax authority requiring him to furnish information in connection with the assessment year of 2019-2020. It was alleged that pursuant to an IT Raid, a London Property was beneficially owned by Vadra for his own benefit and use. It was also stated that Vadra allegedly acquired beneficial interest or ownership in the property through legal ownership which was transferred in the name of a UAE based entity.

In its plea, Vadra prays for quashing of the notices dated 4th December 2018 and 18th December 2019 under sec. 10(1) of the Black Money (Undisclosed Foreign Income and Assets) Act, 2015.

"Pass an appropriate writ and/or order and/or direction declaring that Notification No. 73/2015 dated 24.08.2015 issued by the CBDT is ultra vires the provisions of the Black Money Act and null and void with all its consequential effects." The plea reads further.

Furthermore, the plea also prays directions to immediately supply to Vadra all documents being used against him or relied upon or referred to in the present Black Money Act proceedings against him.

The plea also seeks to declare that the provisions of Black Money and Imposition of Tax Act 2015 are applicable only prospectively and not retrospectively.

Vadra has stated in its plea that the action of the respondent in refusing to grant him additional time to reply to the show cause notice is arbitrary and ultra Vries the provisions of the Act.

It has also been stated that proceedings under the Act are wholly without Jurisdiction as the sale of property "by a non resident to another non resident outside India in the absence of any evidence to satisfy consideration and benefit tests cannot be held to be his property or asset."