Anil Ambani Granted Interim Protection in Alleged Tax Evasion Case Under Black Money Law

The Bombay High Court has granted interim relief to industrialist Anil Ambani , protecting him from prosecution and penalty in an alleged tax evasion case under the Black Money Act , while admitting his petition challenging the constitutional validity of key provisions of the law.

A bench of Justices B P Colabawalla and Firdosh Pooniwalla observed that similar petitions challenging the Act are already pending before the court and admitted Ambani’s plea for a detailed hearing at a later stage. The court also directed the Union government to file its response in the matter.

In its interim order, the court clarified that while appellate proceedings before the Commissioner of Income Tax (Appeals) may continue, no coercive action, including prosecution or penalty, shall be taken against Anil Ambani until the final disposal of the petition.

The case stems from a notice issued by the Income Tax Department in August 2022, alleging that Ambani evaded taxes worth around Rs 420 crore on undisclosed foreign assets valued at more than Rs 814 crore . The alleged funds were reportedly held in two Swiss bank accounts linked to offshore entities.

The department has accused Anil Ambani of wilfully failing to disclose foreign assets in his income tax returns, stating that he is liable for prosecution under provisions of the Black Money Act , which carries a maximum punishment of up to 10 years imprisonment along with fines.

In his petition, Ambani has challenged the constitutional validity of the 2015 legislation, arguing that it should not be applied retrospectively to financial years 2006–07 and 2010–11 , as cited in the tax notice.

He has also contested allegations that he was the beneficial owner of foreign entities, including a Bahamas based trust and a company incorporated in the British Virgin Islands (BVI) , which were allegedly used to hold undisclosed assets.

The court will now hear the matter in detail after receiving the government’s affidavit and examining the legal questions raised in the petition.