Timely disclosure in revised return defeats wilful non-disclosure prosecution under the Black Money Act.

Where foreign assets are disclosed in a revised return filed within the time permitted under Section 139(5) of the Income-tax Act, wilful non-disclosure under the Black Money Act cannot be inferred merely because the revision followed a search or notice. The Court held that Sections 4 and 50 apply only when foreign income or assets are not disclosed in a return furnished within the time allowed under Sections 139(1), 139(4) or 139(5), and the presumption under Section 54 cannot substitute for the missing foundational element of wilful suppression. The criminal proceedings were quashed as the offence was not made out.

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Issues: Whether prosecution for non-disclosure of foreign assets under the Black Money law survives when the assessee had filed a revised return under Section 139(5) of the Income-tax Act within the permissible time and disclosed the assets therein.

Analysis: The complaint rested on alleged failure to disclose foreign assets in the original return. The Court noted that Section 4 and Section 50 of the Black Money Act operate where the foreign income or asset is not disclosed in the return furnished within the time allowed under Section 139(1), 139(4) or 139(5) of the Income-tax Act. The revised return was filed within the statutory period available under Section 139(5), and the foreign assets were disclosed therein after payment of tax. The Court held that, in such circumstances, wilful failure to disclose in the return could not be inferred merely because the revised return was filed after search or notice. It also held that the presumption under Section 54 could not assist the prosecution when the foundational ingredient of wilful non-disclosure was absent.

Conclusion: The offence under Sections 4 and 50 of the Black Money Act was not made out, and the criminal proceedings were liable to be quashed.

Final Conclusion: The petition succeeded because timely disclosure in the revised return negatived the alleged wilful suppression of foreign assets, rendering the prosecution unsustainable.

Ratio Decidendi: Where foreign assets are disclosed in a revised return filed within the time permitted by Section 139(5) of the Income-tax Act, prosecution under the Black Money Act for wilful non-disclosure of those assets is not maintainable.

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