Anil Ambani: The court has directed the Income Tax Department not to take any strict action till November 17 on the notice sent against Anil Ambani, Chairman of Reliance (ADA) Group.
Mumbai: Reliance (ADA) Group Chairman Anil Ambani has been granted temporary relief by the Mumbai High Court (Mumbai High Court). The Income Tax Department had sent a notice to Anil Ambani on August 8 for allegedly evading tax of Rs 420 crore by hiding deposits of Rs 814 crore in his Swiss bank account. Ambani has challenged the notice in the High Court. The hearing was held.
In a notice sent to Anil Ambani, the Income Tax Department has alleged that the information about the assets stashed in foreign banks was deliberately not disclosed to the Indian Income Tax Department. So why should Anil Ambani not be prosecuted under Section 50 and 51 of the Black Money Act, which carries a 10-year jail term if found guilty? This has been asked. Anil Ambani has approached the Bombay High Court against this notice. Ambani claims that the Act came into existence in 2015 and the transactions in respect of which the notice was issued are between the years 2006-07 and 2010-11. Therefore, that Act is not applicable in this case.
The Income Tax Department sought time from the High Court to respond to the petition of Anil Ambani. Taking note of this, the High Court has adjourned the hearing on this matter till November 17 and has directed the Income Tax Department not to take any strict action against Anil Ambani.
What is the matter?
The Income Tax Department has sent a notice to businessman Anil Ambani in connection with the allegation of tax evasion of Rs 420 crore on unaccounted assets of Rs 814 crore kept in a Swiss bank. The Income Tax Department has sent this notice to Anil Ambani under the Black Money Act. The company, registered in the British Virgin Islands in July 2010, opened an account at the Bank of Cyprus in Zurich. The Income Tax Department has alleged that Anil Ambani is the ultimate beneficial owner of the company and its funds. The company received $10 million in 2012 from PUSA, a company registered in the Bahamas. Anil Ambani was its beneficiary. According to tax officials, the two Swiss bank accounts have a total of Rs 814 crore on which tax of Rs 420 crore is applicable.