In a writ petition filed before the Delhi High Court against a notice dated 07-08-2023, as well as an order dated 19-01-2026, passed by the Deputy Director, Income Tax (INV) under Section 10 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (Act), a Division Bench of Justice Dinesh Mehta and Justice Vinod Kumar issued notice to the Deputy Director seeking a reply and stayed the proceedings against the petitioner.
The petitioner was brought to India by the Directorate of Enforcement (ED), and his passport was revoked on 30-05-2019, as a result of which he could not return to Dubai, his place of residence. The Court was informed that his appeal against the revocation of his passport had been pending consideration before the Appellate Authority under the Passports Act, 1967, since 2019. It was also asserted that the Deputy Director had been treating the petitioner as a resident of India by using his forced stay to their advantage and by invoking Section 6 of the Income Tax Act, 1961, to bring him within the definition of resident.
The petitioner asserted that initiating proceedings under the Act in the guise of his unconstitutional confinement was illegal, and that the Income Tax Authority, which treated the petitioner as a resident, had assessed his income as a non-resident.
The Court stated that the objections by the petitioner had not been decided as per law and that the matter required adjudication on the issue of jurisdiction, otherwise the petitioner would have to face harassment of proceedings under the Act. It was stated that in case it is held that the petitioner cannot be treated as a resident within the meaning of Section 6, the proceedings against him cannot continue.
Further, the Court held that the petitioner’s fundamental rights under Articles 14, 19(1)(g), and 21 of the Constitution appeared to be under threat and hence, issued notice to the Deputy Director and allowed a reply to be filed within six weeks. Lastly, the Court directed that the proceedings against the petitioner, pursuant to the notice dated 07-08-2023, be stayed.
The matter is now listed on 29-04-2026.
Appearances:
For Petitioner – Mr. Sachit Jolly (Sr. Adv), Mr. Rajat Manchanda, Ms. Megha Gaur, Mr. Sohum Dua, Mr. Deepanshu Bharti, Mr. Abhyudaya Shankar Bajpai, Ms. Sakshi Sharma
For Respondent – Mr. Siddhartha Sinha (SSC), Ms. Easha Gurung (JSC)
