Delhi HC restrains Income Tax Department from action against Gautam Khaitan [Read Order]

The Delhi High Court has restrained the Income Tax Department from taking any action against VVIP chopper deal scam accused Gautam Khaitan against whom a black money case has been lodged.

Khaitan is one of the accused in the Rs 3,600 crore AgustaWestland VVIP chopper scam. He has challenged the legality of various provisions of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

Mr. P.V. Kapur, learned Senior Counsel appearing on behalf of the petitioner contended that the provisions of sub-Section (3) of Section 1 of the said Act to urge that, in view of the express provision thereof, which stipulates that the said Act shall come into force on the 1st day of April, 2016; the Government has exercised its power to issue Notifications under the powers exercisable by them, within the meaning of the provisions of Section 85 and 86 of the said Act, prior to the same coming into effect on 01.04.2016.

The division bench comprising of Justice Sidharth Mridul and Justice Anu Malhotra observed that, “we are of the opinion that, the petitioner has made out a good prima facie case for grant of interim relief; and that grave prejudice will be caused to him if the official respondents are not restrained at this stage from proceeding further and taking action against the petitioner, under the provisions of the said Act”.

While allowing the petition, the bench also said that, “The respondents are, therefore, restrained from taking and/or continuing any action against the petitioner, pursuant to the impugned order dated 22.01.2019, passed by the respondent No.2, till the next date of hearing”.