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TMI Blog2019 (10) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt was right in observing that while exercise of the powers under the provisions of Sections 85 and 86 of the Black Money Act, the Central Government has made the said Act retrospectively applicable from 01.07.2015 and passed a restraint order. 5. From the Statement of Objects and Reasons, it could be seen that the Black Money Act has been enacted for the following purposes : (a) To unearth the black money stashed in foreign countries; and (b) To prevent unaccounted money going abroad. (c) To punish the persons indulging in illegitimate means of generating money causing loss to the revenue (d) To prevent illegitimate income and assets kept outside the country from being utilised in ways which are detrimental to India's social, economic and strategic interest and its national security. 6. The Black Money Act has been passed by the Parliament on 11.05.2015 and it has received Presidential assent on 26.05.2015. Sub-section (3) of Section 1 provides, that save as otherwise provided in the said Act, it shall come into force on the 1st day of April, 2016. However, by the notification/ order notified on 01.07.2015, which have been impugned before the High Court, it has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the previous year in the present case would mean a period of twelve months commencing on the 1st day of April of the relevant year and which immediately precedes the assessment year. 11. A bare reading of the provisions of Section 3 read with Section 2(9)(d) of the Black Money Act would unambiguously show, that the legislative intent insofar as the charging tax on undisclosed asset located outside India is concerned, is to charge the tax on its value in the previous year in which such asset comes to the notice of the Assessing Officer. The previous year in the present case would be a period of twelve months commencing on the 1st day of April of the relevant year and which immediately precedes the assessment year. 12. It could thus be seen, that Section 3 read with Section 2 (9)(d) of the Black Money Act would permit the Assessing Officer, while assessing the case of an assessee for assessment year commencing after 01.04.2016, to bring the undisclosed asset located outside India under the tax net on the value of the said property within a period of twelve months, prior to the date on which such asset comes to the notice of the Assessing Officer. By virtue of these provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this Act shall apply accordingly." 15. It could therefore be seen, that where no declaration in respect of the asset covered under the Black Money Act is made, such asset would be deemed to have been acquired or made in the year in which a notice under Section 10 is issued by the Assessing Officer and the provisions of the Act shall apply accordingly. 16. The offences in respect of which sanction has been granted are under Sections 50 and 51 of the Black Money Act, which read thus : "50. Punishment for failure to furnish in return of income, any information about an asset (including financial interest in any entity) located outside India. If any person, being a resident other than not ordinarily resident in India within the meaning of clause (6) of section 6 of the Income tax Act, who has furnished the return of income for any previous year under subsection (1) or subsection (4) or subsection (5) of section 139 of that Act, wilfully fails to furnish in such return any information relating to an asset (including financial interest in any entity) located outside India, held by him, as a beneficial owner or otherwise or in which he was a beneficiary, at any time during such pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l owner or otherwise or in which he was a beneficiary, at any time during such previous year, or disclose any income from a source outside 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. 18. The penalty of the offences under Section 51 is for wilful attempt in any manner whatsoever to evade the payment of any tax, penalty or interest chargeable or imposable under the Incometax Act. The punishment provided under subsection (1) is for rigorous imprisonment for a term which shall not be less than three years but which may extend to ten years and with fine. In respect to any other person not covered by subsection (1) of Section 51, the punishment provided is 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. 19. It could therefore be seen, that the scheme of the Black Money Act is to provide stringent measures for curbing the menace of black money. Various offences have been defined and stringent punishments have also been provided. However, the sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order to remove difficulties. The penal provisions under Sections 50 and 51 of the Black Money Act would come into play only when an assessee has failed to take benefit of Section 59 and neither disclosed assets covered by the Black Money Act nor paid the tax and penalty thereon. As such, we find that the High Court was not right in holding that, by the notification/order impugned before it, the penal provisions were made retrospectively applicable.
21. In any case, 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.
22. In that view of the matter, we find that the interim order passed by the High Court is not sustainable in law, the same is quashed and set aside.
23. The High Court is requested to decide the writ petition on its own merits. However, we clarify that the observations made by us are only for the purposes of examining the correctness of the interim order passed by the High Court and the High Court would decide the writ petition uninfluenced by the same.
24. The appeal stands allowed as indicated above. X X X X Extracts X X X X X X X X Extracts X X X X
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