The continuation of proceedings under the Black Money Act is impermissible where tax compliance has been established before the Act's enforcement.

ORDER :

By this Common Order, all these Writ Petitions are being disposed of.

2. These Writ Petitions have been filed by the respective petitioners for a Writ of Certiorari, to quash the Impugned Notice dated 27.02.2018 issued under Section 10 (1) of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 and all further Consequential Notices dated 03.03.2020, 16.10.2020 and 26.12.2020 and for a Writ of Prohibition, to prohibit the respondents from proceeding further with the aforesaid notices issued to the respective petitioners.

3. The said Act came into force on 01.07.2015. Even prior to the Act came into force on 01.07.2015, the respective petitioners appeared to have received notices under Section 131 of the INCOME TAX ACT , 1961 for the Assessment Years 2005-2006 to 2011-2012. Under these circumstances, the respective petitioners filed Return of Income for the Assessment Years 2005-2006 to 2011-2012 on 21.05.2015.

4. The respective petitioners opted to settle the dispute before the Income Tax Settlement Commission (ITSC) by filing Statement of Facts on 10.07.2015. This was about few days after the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 came into force with effect from 01.07.2015.

5. By an order dated 30.06.2015, the Settlement Commission rejected the applications. Under these circumstances, the respective petitioners once again filed fresh applications on 10.07.2015 before the Settlement Commission which were again rejected by the Settlement Commission on 15.07.2015 on the ground that the income which are liable to tax under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 cannot be settled under Chapter XIX-A (19-A) of the INCOME TAX ACT , 1961.

6. Under these circumstances, the respective petitioners approached this Court in W.P.No.22216 of 2015 and W.P.No.22219 of 2015. By an Order dated 21.06.2016, this Court was pleased to allow the above Writ Petitions with the following observations:-

“7. In the light of the above stand taken which is based on the Explanatory Note dated 02.07.2015 issued in Circular No.12 of 2015, as the Black Money (Undisclosed Foreign Income Tax and Assets) and Imposition of Tax Act, 2015 comes into effect from 01.07.2015 and the petitioners had filed their Return of Income on 21.05.2015 and notice was issued under Section 148 of the INCOME TAX ACT by the Assessing Officer on 29.05.2015 which is before coming into effect of the provisions of the Black Money Act, 2015, the applications submitted by the petitioners before the Commission are maintainable.

8. Accordingly, the Writ Petitions are allowed and the impugned orders are set aside and the petitioners are directed to file an application before the Income Tax Settlement Commission, which shall be considered by the Commission in accordance with the provisions of the Act. No costs. Consequently, connected Miscellaneous Petitions are closed.”

7. Pursuant to the Directions of this Court dated 21.06.2016 in W.P.No.22216 of 2015 and W.P.No.22219 of 2015, the Settlement Commission passed an Order dated 06.12.2017 on merits and thus, rejected the applications filed by the respective petitioners to settle the dispute und