ACHAL RAMESH CHAUASIA vs. DEPUTY DIRECTOR OF INCOME TAX AND ORS

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IA/6948/2025HC BombayHCBM01018834202503 April 2025Author: HON'BLE SHRI JUSTICE A.S. CHANDURKAR,HON'BLE SHRI JUSTICE M. M. SATHAYE5 pages

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What did the High Court hold?

The High Court granted the applicant-petitioner permission to travel from Mumbai to Dubai, UAE, between April 4, 2025, and June 10, 2025, subject to several conditions. These conditions include filing an undertaking with a detailed itinerary, hotel addresses, contact details, and a commitment to return by June 11, 2025. He must also undertake not to seek renewal of the order until his return and to return within 96 hours if the Income Tax Department requires his presence. A further undertaking requires him to file an affidavit within one week of his return, detailing business meetings, expenses, and income sources for the trip. The Look Out Circular issued at the instance of the respondent-Income Tax Department was suspended until June 11, 2025. The court directed immigration authorities to permit the applicant's passage irrespective of notifications. The matter was listed for reporting compliance on June 16, 2025.

What were the facts?

The applicant-petitioner, Mr. Achal Ramesh Chaurasia, is subject to a Look Out Circular (LOC) issued at the instance of the respondent-Income Tax Department. He filed an interim application seeking leave to travel from Mumbai to Dubai, UAE, between April 4, 2025, and June 10, 2025, for business purposes and to visit his wife and child. The High Court noted that the applicant had been permitted to travel abroad on previous occasions, with the last such order on February 20, 2025, and that he had complied with the conditions. The respondent-Income Tax Department did not raise any grievance regarding the flouting of previous conditions.

What were the issues?

1. Whether the applicant-petitioner should be granted permission to travel abroad from April 4, 2025, to June 10, 2025, for business and personal reasons, despite the Look Out Circular issued against him by the Income Tax Department? (Question of mixed law and fact, concerning the balance of convenience and the applicant's right to travel versus the revenue's interest). Assessee's Contention: The applicant-petitioner, through his counsel, argued that he had been permitted to travel abroad on multiple prior occasions and had complied with all imposed conditions. The respondent-Income Tax Department had no grievance regarding past compliance. Revenue's Contention: The judgment records that the respondent-Income Tax Department was represented, but it does not record any specific arguments or contentions made by them against the grant of permission in this application.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION INTERIM APPLICATION NO.6948 OF 2025 IN WRIT PETITION NO.8903 OF 2023 Mr. Achal Ramesh Chaurasia ] R/of. Juhu, Mumbai ] .. Applicant-Org. Petitioner Versus

Deputy Director of Income Tax ] (Investigation) – 1(3), Mumbai ]

Assistant Commissioner of Income Tax, ] Central Circle 5(2), Mumbai ]

Deputy Director, ] Bureau of Immigration, ] Ministry of Home Affairs, Mumbai ]

Union of India, ] Through Ministry of Home Affairs ]

Union of India, ] Through Ministry of Finance ] .. Respondents Mr. Atul Rajadhyaksha, Senior Advocate, with Mr. Akhilesh Dubey, Mr. Amit Dubey, Mr. Rajuram Kuleriya and Mr. Varad Dubey, Advocates, i/by Law Counsellors, for the Applicant-Original Petitioner. Ms. Sushma Nagaraj (through V.C.) with Ms. Maansi Bhavnani, Advocates for the Respondent - Deputy Director of Income Tax. CORAM : A.S. CHANDURKAR & M.M. SATHAYE, JJ DATE : 3RD APRIL 2025. [ THROUGH HYBRID HEARING ] P.C. :

The applicant-petitioner is facing Look Out Circular issued at the instance of the respondent-Income Tax Department. 1/5 904-IA-6948-2025.doc Dixit SNEHA ABHAY DIXIT SNEHA ABHAY DIXIT Date: 2025.04.03 20:06:35 +0530

By this interim application, the applicant-petitioner seeks leave to travel from Mumbai to Dubai, U.A.E. between the period from 4th April 2025 to 10th June 2025 for business purpose and also for meeting his wife and child.

We have heard learned counsel for the parties and we have perused the documents on record including the earlier orders passed by this Court by which the applicant-petitioner was permitted to travel abroad by imposing various conditions.

In the light of the fact that on various earlier occasions the applicant-petitioner was permitted to travel abroad, the last such order being passed on 20th February 2025, and that the applicant-petitioner has complied with the terms and conditions as also it is not the grievance of the respondent-Income Tax Department that the conditions imposed by the earlier orders were flouted, we are inclined to grant such leave subject to the following conditions :- (i) The applicant-petitioner shall file an undertaking in this Court setting out a detailed itinerary of the above travel including the airline tickets, addresses of the hotels where he would be staying during the above travel, along with other contact details. This 2/5 904-IA-6948-2025.doc Dixit

undertaking shall also state that the applicant- petitioner shall return to India on or before 11th June 2025. (ii) The applicant-petitioner shall also file another undertaking stating that he would not apply for renewal and/or extension of this order until he returns to India. (iii) The applicant-petitioner shall also file an undertaking that if the Income Tax Department requires his presence during the above period, he shall return to India within ninety-six hours of receiving notice requiring his presence before the Income Tax Department. It is clarified that once the applicant-petitioner attends before the Income Tax Department, he would be permitted to go back to Dubai under this very order and would not require fresh permission, provided his travel is any time before 10th June 2025. (iv) The aforesaid undertakings shall be served on the Advocate for the respondents before the date of departure. 3/5 904-IA-6948-2025.doc Dixit

(v) Considering that the applicant-petitioner is traveling for business purpose, within one week from 11th June 2025, he shall file a separate affidavit explaining the business meetings which he held during the above travel and with whom, together with the contact details of the persons he met and the details of the business he was able to generate, if any. In this affidavit, the applicant-petitioner shall also state the expenses incurred by him during the above travel and the source/s of income used for funding the said expenses with necessary proof. This affidavit shall also be served on the Advocate for the respondents within a period of one week from 11th June 2025. 5. The applicant-petitioner is permitted to travel from Mumbai to Dubai, U.A.E. for business purpose between the period from 4th April 2025 to 10th June 2025 on aforesaid conditions.

Subject to the above conditions, the Look Out Circular issued at the instance of the respondent-Income Tax Department against the applicant- petitioner is suspended upto 11th June 2025. It is clarified that this order does not apply to any other Look Out Circular and / or restraint order, if issued by any other Authority / Court / Agency / Bank. 4/5 904-IA-6948-2025.doc Dixit

The Immigration Authorities at all Ports of Departure including all Airports will permit the applicant-petitioner passage and allow him to take his flights out of the country irrespective of whether the respondent- Income Tax Department has notified them or not and irrespective of whether this suspension is noted in the Immigration Authorities’ systems or otherwise.

The Immigration Authorities shall not insist upon a certified copy of this order but will act on presentation of an authenticated or digitally signed copy of this order.

Put up for reporting compliance on 16th June 2025. [ M.M. SATHAYE, J. ]

[ A.S. CHANDURKAR, J. ] 5/5 904-IA-6948-2025.doc Dixit

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