SANJAY BHASKAR vs. UNION OF INDIA & ANR.

W.P.(C) 14592/2022 Page 1 of 7

$~1 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 14592/2022 & CM APPLs. 43459/2023, 44693/2023, 47269/2023, 8883/2024, 20707/2024

SANJAY BHASKAR

.....Petitioner Through: Mr. Giriraj Subramanium, Mr. Akhilesh Talluri and Mr. Joy Banerjee, Advocates.

versus

UNION OF INDIA & ANR.

.....Respondents

Through: Mr. Varun Mishra, SPC with Ms. Aranya Sahay, Advocate for R-1.

Mr. Abhishek Kumar Maratha, Sr. Standing Counsel with Mr. Apoorv Agarwal, Jr. Standing Counsel for Income Tax Department.

CORAM:

HON'BLE MR. JUSTICE SANJEEV NARULA

O R D E R %

15.07.2024 1. Through the present writ petition, the Petitioner seeks quashing and/or cancellation of the Look Out Circular1 issued against him by Respondent No. 1 – Ministry of Home Affairs, at the instance of Respondent No. 2 – Income Tax Department. 2. During the pendency of the present proceedings, through orders passed by this Court, the Petitioner has been granted permission to travel abroad on multiple occasions, subject to certain conditions. It is observed that on previous occasions, the Petitioner has duly complied with such conditions, travelled abroad and returned back to the country. Counsel for

1 “LOC” This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/07/2025 at 21:43:49

W.P.(C) 14592/2022 Page 2 of 7

the Petitioner, on instructions states that the Petitioner is agreeable to abide with the terms and conditions specified in the previous orders passed by this Court, till such time the proceedings initiated by the Respondents are concluded. Counsel for the Petitioner further states on instructions that the Petitioner is willing to furnish to the Court, an additional affidavit disclosing all assets owned by him. 3. The impugned LOC was initiated on 30th March 2021, in terms of proceedings under Section 276 C (1) of the Income Tax Act, 19612 in relation to wilful attempt to evade tax, etc. Subsequently, investigations have also been initiated under Section 10(1), 50 and 51(1) of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 20153. 4. The Respondents argue that the LOC was initiated against the Petitioner as he has committed offences of wilfully attempting to evade tax by not disclosing his foreign assets and financial interest in foreign entities, in the income tax returns filed by him. It is submitted that during the course of investigation, the Petitioner’s responses to the summons issued by Respondent No. 2 were found to be vague and he also attempted to disown the statements made by him during a search conducted by Respondent No. 2 at the Petitioner’s house. Furthermore, it is pointed out that subsequent to the commencement of the investigation by Respondent No. 2, the Petitioner changed his citizenship from India to Antigua and Barbuda and additionally, most of his family members are already residing outside India. It is the case of the Respondents that the Petitioner has been evasive during investigation proceedings and there is a high possibility that he may try to escape from

2 “IT Act” 3 “Black Money Act” This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/07/2025 at 21:43:49

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India to avoid his tax liabilities, which are likely to be of substantial amounts and may also attract penal consequences. Therefore, the Petitioner is a ‘flight risk’ and it is imperative to ensure his presence in India. 5. The Petitioner had challenged the legality of the LOC by urging that he has been fully cooperating in the ongoing investigation by the Respondents. It is submitted that initially, in terms of the assessment proceedings under Sections 153A of the Income Tax Act, the liability of the Petitioner was found to be Rs. 4,77,778/-, which has been deposited by the Petitioner. It is argued that this assessment is inclusive of both the disclosed and undisclosed income of the Petitioner and pertains to the same financial year that is under investigation. Therefore, there is no other undisclosed or hidden assets or income held by the Petitioner and the Respondents’ effort to impose any further tax liability on him, would not be permissible. Thus, the entire basis for issuance of the LOC is unreasonable and arbitrary. 6. Furthermore, it is pointed out by the Petitioner the notice under Section 10(1) of the Black Money Act was issued on 15th September, 2022 and the investigation is currently pending, with no indication in sight as to when the Respondents will bring action against the Petitioner under the Black Money Act. It is only after the conclusion of the said investigation that it will be determined whether the Petitioner is liable for prosecution of the offences. The LOC cannot continue in perpetuity, restricting the Petitioner’s rights and liberties. 7. The Court has heard the counsel for the parties. The scope of the present writ petition is to determine whether the LOC issued against the Petitioner, in terms of the ongoing investigations against him under Black Money Act, ought to be set aside. Due regard must be given to the fact that This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/07/2025 at 21:43:49

W.P.(C) 14592/2022 Page 4 of 7

during the course of the present proceedings, the Petitioner has travelled abroad on multiple occasions, has complied with all the conditions imposed on him and has duly returned to India each time. Therefore, in the opinion of this Court, the element of the Petitioner being a ‘flight risk’ as highlighted by the Respondents, is diluted. 8. Further, it is important to note that the investigation under the Black Money Act, which commenced in September 2022, has not yet been concluded and in the meantime the LOC restricting the Petitioner’s travel continues to be in force. However, in the opinion of the Court, the purpose of issuing an LOC against the Petitioner as well as the interest of Respondent No. 2 during the ongoing investigations, can be adequately safeguarded since the Petitioner has agreed to abide by the terms and conditions set by this Court on his travel abroad. 9. In light of the above, the present writ petition is allowed and the LOC dated 30th March, 2021 is quashed with the following directions: (i) The Petitioner shall furnish a sworn affidavit disclosing all assets (domestic and foreign) owned by him, within 4 weeks from the release of this order. (ii) The Petitioner shall also not alienate or attempt to alienate any such assets which are held in his name or for which he is the owner or a beneficiary, including the assets under investigation. (iii) The Petitioner and the Wife of the Petitioner, Mrs. Adita Bhaskar would be permitted to continue to make investments and deal with the stocks mentioned in the portfolio of stocks and equity investments held in the name of Mrs. Anita Bhaskar, so long as the value is maintained at not less than INR. 10,59,55,496/- (Rupees Ten Crores, This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/07/2025 at 21:43:49

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Fifty Nine Lakhs, Fifty Five Thousand, Four Hundred and Ninety Six Only) which is the current value of the said stock and equity reflected in the portfolio report as on 21st April, 2024 (attached as Annexure A of the affidavit-cum-undertaking dated 23rd April, 2024). On a monthly basis, the statement regarding the said portfolio shall be submitted by the Petitioner via email to the official of the Income Tax Department identified and communicated to the Petitioner. (iv) Insofar as the following Properties are concerned: (a) bearing Unit No. 6A-I, Ground Floor in Tribuvan Complex, 10th Milestone, Main Mathura Road, Ishwar Nagar, New Delhi - 1100065 and (b) bearing Unit No. 6A-II, Block No. 6, Ground Floor in Tribuvan Complex, 10th Milestone, Main Mathura Road, Ishwar Nagar, New Delhi- 1100065, no third party interest shall be created in the said properties, either in terms of the ownership or in terms of possession. If the Petitioner wishes to lease out the said properties to any third party, the same shall be done after intimating the Income Tax Department in advance. (v) The Petitioner shall nominate a Power of Attorney holder, who would be an Indian Citizen and who shall be the contact person on behalf of the Petitioner for dealing with the Income Tax Department. (vi) Every time the Petitioner wishes to leave India and travel abroad, the Petitioner shall furnish a detailed affidavit to the Respondents, disclosing his detailed itinerary, including his stay at various stations abroad, telephone numbers and residential/hotel addresses. Along with the said affidavit(s), the Petitioner shall also file an undertaking that he shall adhere to the itinerary mentioned in the affidavit and not This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/07/2025 at 21:43:49

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visit any other stations. Additionally, the Petitioner shall also provide the contact numbers which he will use during the period he stays abroad, and at least one of the said contact numbers will be always kept operational, subject to all just exceptions, including the period he is on board an aircraft. (vii) That the Petitioner shall intimate the Income Tax Department before leaving India and inform them of his return within 72 hours of his arrival in India. (viii) The Petitioner shall file a self-attested copy of his passport along with a copy of his visa(s) to the Income Tax Department on his return to India. (ix) In case any of the above conditions are violated, the security furnished by the Petitioner would be liable to be forfeited. 10. The above conditions shall apply till the ongoing proceedings against the Petitioner under the Income Tax Act and the Black Money Act are concluded. It must also be noted that the statutory notice under Section 10(1) of the Black Money Act was issued to the Petitioner on 15th September, 2022. It is not in dispute that as per Section 11 of the Black Money Act, the statutory time limit for completion of proceedings is March, 2025. Thus, the Petitioner is given liberty, to approach the Court again to seek variations of the conditions imposed hereinabove, in case the said proceedings are not concluded with the aforenoted timelines. 11. On the conclusion of the ongoing proceedings under the Income Tax Act and Black Money Act within the said timelines, the Respondents shall be permitted to issue a fresh LoC against the Petitioner, if permissible under law. It is made clear that the instant order should not be understood as this This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/07/2025 at 21:43:49

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Court’s direction to the Respondents that they must issue an LoC on conclusion of the proceedings. Moreover, if such an LoC is issued, the Petitioner shall be at liberty to challenge the same, in accordance with law. Such a judicial review shall be examined on its own merits. 12. In view of the above, the present writ petition, along with pending application(s), is disposed of.

SANJEEV NARULA, J JULY 15, 2024/as This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/07/2025 at 21:43:49