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2015 (3) TMI 100 - HC - Income TaxIndia Development Bonds received from NRI's/Overseas Corporate Bodies as gifts - immunity provided to the bond holder u/s 6 and 7 of the Remittance of Foreign Exchange and Investment in Foreign Exchange Bonds (Immunities and Exemptions) Act, 1991 which includes that no enquiry to be made from bond holder, regarding the source, is also available to gifts, which are found to be bogus? - Held that:- Under clause (a) of sub-section (1) of Section 6 of the Act, the immunity would extend only against the disclosure of the nature and source of the investment in the bonds. The immunity would be available to an NRI or OCB who or which owns the bonds on the one hand and, on the other hand, to a resident of India to whom a gift of such bonds have been made by an NRI or OCB. The immunity would not be applicable where the gift is found not to meet the requirements spelt out in clause (a) of sub-section (1) of Section 6. The immunity in clause (a) is against a disclosure of the nature and source of the investment in such bonds; in clause (b) against enquiry or investigation on the ground that such person owns such bonds and in clause (c) against the reception in evidence of the fact that any of the persons mentioned in clause (a) owns such bonds, in any proceedings relating to an offence or the imposition of any penalty under the Acts in question. Thus the judgment of the Division Bench at Lucknow in Usha Omer (2011 (7) TMI 441 - Allahabad High Court ) would have to be read down so as to confer an immunity only on compliance with the conditions of Section 6 and to the extent legislated, as explained in answer to Question-A above. - Decided against assessee.
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