The Tis Hazari Court, Delhi has dismissed a prosecution launched by the Income Tax Department alleging concealment of offshore assets and evasion of taxes through a British Virgin Islands-based entity. The case, filed under Sections 276C(1) and 277 of the Income Tax Act, 1961, along with Sections 181, 191, and 193 of the IPC, was based on information sourced from the International Consortium of Investigative Journalists (ICIJ) website and foreign authorities in the British Virgin Islands and Singapore.

The prosecution claimed the accused held beneficial ownership in an overseas company maintaining a bank account with UBS Singapore. However, the Court noted that the case relied solely on unauthenticated photocopies of foreign documents, which were neither produced in original nor certified in accordance with the Indian Evidence Act, 1872. The Court further observed that no quantification of the alleged tax evasion was conducted, a mandatory requirement for invoking Section 276C(1).

Holding that the pre-charge evidence was insufficient to sustain the allegations or justify a trial, ACJM (Special Acts) Arjinder Kaur ruled that the prosecution failed to establish a prima facie case.

The Court, therefore, discharged the accused and dismissed the complaint.

Appearances: 

Sh. Kanhaiya Singhal, Ld. SPP for the complainant.

Sh. H.S. Bhullar, Ld. counsel for accused.

Ms. Yashi Gupta, Proxy Counsel for accused.