TMI Blog2019 (10) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... before a date notified by the Central Government in the Official Gazette. The date so notified for making a declaration is 30.09.2015 whereas, the date for payment of tax and penalty was notified to be 31.12.2015. In order to give the benefit to the assessee(s) and to remove the anomalies the date 01.07.2015 has been substituted in subsection (3) of Section 1 of the Black Money Act, in place of 01.04.2016. This is done, so as to enable the assessee desiring to take benefit of Section 59 of the Black Money Act. By doing so, the assessees, who desired to take the benefit of one time opportunity, could have made declaration prior to 30th September, 2015 and paid the tax and penalty prior to 31st December, 2015. In the factual scenario of the present case, it would reveal, that the assessment year in consideration was 2019-2020 and the previous year relevant to the assessment year was the year ending on 31.03.2019. The interim order passed by the High Court is not sustainable in law, the same is quashed and set aside. - Criminal Appeal No. 1563 of 2019 ( Arising out of S.L.P. ( Crl. ) No. 4911 of 2019) - - - Dated:- 15-10-2019 - JUSTICE ARUN MISHRA , JUSTICE M. R. SHAH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Section 3 of the Black Money Act, which is a charging section. 3. Charge of Tax ( 1) There shall be charged on every assessee for every assessment year commencing on or after the 1st day of April, 2016, subject to the provisions of this Act, a tax in respect of his total undisclosed foreign income and asset of the previous year at the rate of thirty per cent of such undisclosed income and asset: Provided that an undisclosed asset located outside India shall be charged to tax on its value in the previous year in which such asset comes to the notice of the Assessing Officer. (2) For the purposes of this section, value of an undisclosed asset means the fair market value of an asset (including financial interest in any entity) determined in such manner as may be prescribed. 8. It could thus be seen, that Section 3 provides that tax shall be charged on every assessee for every assessment year commencing on or after the 1st day of April, 2016 in respect of his total undisclosed foreign income and assets of the previous year. The rate of the said tax has been quantified at thirty per cent. The proviso to subsection (1) of Section 3 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue as would be ascertained in a previous year ending on 31.03.2016. A perusal of Section 3 of the Black Money Act would further reveal, that what is relevant is the date on which the Assessing Officer notices the acquisition by an assessee of undisclosed asset located outside India. However, for the purposes of taxation, the value of such asset has to be ascertained as is in the immediate previous year. 13. A perusal of Section 59 of the Black Money Act would further reveal, that an opportunity is given to the assessee to make a declaration in respect of any undisclosed asset located outside India and acquired from income chargeable to tax under the Income tax Act, for any assessment year prior to the assessment year beginning on 01.04.2016. Section 59 further provides, that such a declaration has to be made on or after the date of commencement of the Black Money Act, however, before the date to be notified by the Central Government. The Central Government, in exercise of the powers under Section 59 of the Black Money Act, published a Notification on 01.07.2015, notifying 30.09.2015 as the date on or before which a person is required to make a declaration in respect of an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... side India, he shall be punishable with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine. 51. Punishment for wilful attempt to evade tax (1) If a person, being a resident other than not ordinarily resident in India within the meaning of clause (6) of section 6 of the Incometax Act, wilfully attempts in any manner whatsoever to evade any tax, penalty or interest chargeable or imposable under this Act, he shall be punishable with rigorous imprisonment for a term which shall not be less than three years but which may extend to ten years and with fine. (2) If a person wilfully attempts in any manner whatsoever to evade the payment of any tax, penalty or interest under this Act, he shall, without prejudice to any penalty that may be imposable on him under any other provision of this Act, be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and shall, in the discretion of the court, also be liable to fine. (3) For the purposes of this section, a wilful attempt to evade any tax, penalty or i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts have also been provided. However, the scheme of the Black Money Act also provided one time opportunity to make a declaration in respect of any undisclosed asset located outside India and acquired from income chargeable to tax under the Incometax Act. Section 59 of the Black Money Act provided that such a declaration was to be made on or after the date of commencement of the Black Money Act, but on or before a date notified by the Central Government in the Official Gazette. The date so notified for making a declaration is 30.09.2015 whereas, the date for payment of tax and penalty was notified to be 31.12.2015. As such, an anomalous situation was arising if the date under subsection (3) of Section 1 of the Black Money Act was to be retained as 01.04.2016, then the period for making a declaration would have been lapsed by 30.09.2015 and the date for payment of tax and penalty would have also been lapsed by 31.12.2015. However, in view of the date originally prescribed by subsection (3) of Section 1 of the Black Money Act, such a declaration could have been made only after 01.04.2016. Therefore, in order to give the benefit to the assessee(s) and to remove the anomalies the date 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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