ORDER

05.07.2023

JUDGEMENT

FPA-PMLA-2146/DLI/2018

“The Black Money” in common parlance refers to tax-evaded money. The Central Government felt that evasion of tax robs the nation of critical resources necessary for economic growth. It also puts dis- proportionate burden on the honest taxpayers as they have to bear the brunt of higher tax to make up a revenue leakage caused by evasion. The money stashed away abroad by evading tax cannot be used and otherwise threatens national security. The Central Government, in the year 2014, committed itself to the task of tracking down and bringing back undisclosed foreign assets and income which legitimately belongs to the nation. In the Budget Speech of 2015, the Central Government disclosed its intention to bring enactment to address the black money parked outside the nation.

The Apex Court of India has also expressed concern over the problem of black money. The Special Investigation Team constituted by the Central Government to implement the judgment of the Supreme Court expressed its view and suggested the measures to be taken to curb the menace of black money. The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (in short “the Act of 2015”) was brought to address serious problem of black money affecting the economy of the country erased by unused at the cost of the development of the Country.

The present Appeal is an outcome of an action taken by the Appellant Department in pursuance to the Act of 2015 and the Prevention of Money-Laundering Act, 2002 (in short “the Act of 2002”). The Appeal has been preferred by the Department to challenge the order of the Adjudicating Authority refusing to confirm the Provisional Attachment Order. The Appellant Department has raised important legal issues for address by the Appellate Tribunal. A serious contest to it has been made by the Respondent with a prayer to dismiss the Appeal. It is, therefore, necessary to first refer to the brief facts of the case and thereupon to frame legal issues raised in this Appeal.

Brief Facts of the Case:-

The Appellant has referred to the brief facts of the case. It is contended that information was received from the office of Additional Commissioner of Income Tax, Jhandewala, New Delhi on search and seizure conducted at various offices and residential premises of Shri Sanjay Bhandari and his close associates. During the search, several documents revealed various foreign assets in the shape of foreign bank Account, foreign immovable properties and entities owned by Shri Sanjay Bhandari and his associates directly or indirectly. It was also revealed that Respondent had incorporated an entity in Dubai of which Sanjay Bhandari was beneficial shareholder and director.

The Appellant Department initiated investigation under the Act of 2002 after recording an ECIR on 10.02.2017 for suspected offence of money-laundering. It was for Scheduled Offence under Section 51 of the Act, 2015. The Appellant Department could reveal that office of Joint Commissioner of Income Tax, New Delhi issued a notice to the Respondent on 22.09.2016 under Section 10(1) of the Act of 2015 for willful attempt to evade tax by not disclosing foreign assets/entities/bank account in the I.T. returns. As per the information received by the Appellant Department after the search by the Income Tax Department, following undisclosed foreign assets were found alongwith informations to make out a case for offence under Section 51 of the Act of 2015:-

(i) C-303, Maurya Grandeur, Palms Jumeirah, Dubai – Page No. 67-68 of the Annexure A-4 found and seized at 12-A, Panchsheel Enclave, New Delhi, was a copy of contract of sale dated 12.08.2009 of Maurya C-303, in favour of Sanjay Bhandari with value of property at 54,94,350 AED.

(ii) Flat No. 6, Grosvenor Hill Court, Bourdon Street, London- During the Search and Seizure action at the residence of one Sh. Ashok Shankar, A-341, Defence Colony, New Delhi, close associate of Sanjay Bhandari, Pag