Delhi High Court - Orders
Record) Prateek Chitkara vs Union Of India And Ors on 19 September, 2022
Author: Yashwant Varma
Bench: Yashwant Varma
$~9
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 10998/2022 & CM APPL.41138/2022(Add. Facts On
Record)
PRATEEK CHITKARA ..... Petitioner
Through: Mr. Gaurav Gupta and Mr. Sharan
Mehta, Advocates
versus
UNION OF INDIA AND ORS ..... Respondents
Through: Mr. Anurag Ahluwalia, CGSC for R-
1 to R-3
Mr. Abhishek Maratha, Senior
Standing Counsel for R-4
CORAM:
HON'BLE MR. JUSTICE YASHWANT VARMA
ORDER
% 19.09.2022 Notice. Since the respondents are duly represented, let a counter affidavit be filed within a period of six weeks from today.
List again on 13.02.2023.
CM APPL. 32139/2022(Interim Relief) The Court finds no ground to grant the prayers as made herein for the following reasons.
Learned counsel for the fourth respondent has placed for the perusal of the Court a Status Report with respect to the proceedings which were taken against the petitioner here under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 ["2015 Act"].
Signature Not Verified Digitally Signed By:NEHA Signing Date:20.09.2022 15:23:32According to those respondents a demand of Rs.5,63,55,210/- was raised and is still outstanding against the petitioner. While the aforesaid orders passed by the Assessing Authority presently form subject matter of a statutory appeal which has been preferred by the petitioner, the Court deems it apposite to notice the following undisclosed foreign assets which were found to have been held by the petitioner and which had led to the initiation of proceedings under the 2015 Act. Those facts as duly recorded in the course of proceedings taken under the 2015 Act read as under: -
"11. Based on the above facts of the case, it is clear the Mr. Prateek Chitkara was holder of the following undisclosed foreign assets:
Sl. Asset Relevant Amount/Value Amount (INR) Financial Years 1 Total Credits in 2014-19 USD 4,19,48,161.87 2,72,73,44,850.92 the account no 582-288742-838 HKD 1,705.69 with HSBC Bank ( Hong EUR 1,13,951.69 Kong) 2 Share Capital of 2014-19 HK $10,000 82,561.15 Wise Sharp Tech Group Limited Total 272,74,27,412.07"
The Court bears in mind the fact that under the extant Office Memorandum which governs the issue of Look Out Circulars, the solitary relevant factor is not merely of the individual being arraigned as an accused in a criminal case, but also of the Court bearing in mind the larger public interest as well as the economic interests of the country which too are factors Signature Not Verified Digitally Signed By:NEHA Signing Date:20.09.2022 15:23:32 to be borne in mind while evaluation the validity of a Look Out Circular that may come to be opened. What weighs with the Court at this stage is the quantum of funds that are stated to have been ferreted overseas as well as the possibility of the same being obfuscated and concealed to the detriment of the respondents.
The Court further notes that learned counsel for the petitioner was unable to tender any plausible explanation for the quantum of funds held overseas. The fact that the aforesaid account was opened and controlled by the petitioner was also not disputed on behalf of the petitioner. Learned counsel was also unable to place before the Court any cogent material in support of his contention that the aforesaid account was transferred to another individual/entity or that his interests therein were surrendered in accordance with a procedure recognizable in law.
Bearing the aforesaid facts in mind, the prayer for interim travel is refused.
YASHWANT VARMA, J.
SEPTEMBER 19, 2022 rsk Signature Not Verified Digitally Signed By:NEHA Signing Date:20.09.2022 15:23:32