Businessman Gets Travel Permission to USA Despite Black Money Act Investigation After Showing Cooperation

Delhi HC granted petitioner permission to travel to USA for business meetings and to meet daughter, despite ongoing Black Money Act investigations. Court considered petitioner's consistent cooperation in investigations and noted three previous travel permissions were granted. Permission was granted subject to specified conditions, with the application being disposed of favorably.

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Issues Involved:
1. Permission to travel abroad.
2. Proceedings under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
3. Investigation by the Income Tax Department.
4. Look-out Circular (LOC) issued by Bureau of Immigration.
5. Undertakings and securities provided by the Petitioner.

Summary:

1. Permission to Travel Abroad:
The Petitioner sought permission to travel to Lisbon, Portugal, and various locations in the USA for business meetings and to visit his daughter. The itinerary specified travel dates from April 13, 2023, to April 27, 2023. The Petitioner referenced previous court orders allowing travel and offered to provide security through his companies' assets.

2. Proceedings under the Black Money Act:
The Petitioner referenced two orders by the Division Bench of the High Court dated March 24, 2023, and March 29, 2023, related to proceedings u/s 72(c) of the Black Money Act. The Petitioner challenged the show cause notice dated February 22, 2021, and the constitutional validity of Section 72(c) of the Black Money Act.

3. Investigation by the Income Tax Department:
The Respondents argued that ongoing investigations under the Black Money Act and the Income Tax Department's findings of foreign bank accounts controlled by the Petitioner could be jeopardized by his travel. The Petitioner had been cooperative in previous investigations, and his statements had been recorded multiple times.

4. Look-out Circular (LOC):
The LOC issued by the Bureau of Immigration at the behest of the Income Tax Department was in view of the proceedings under the Black Money Act. The Petitioner had filed a writ petition challenging the LOC and the show cause notice under the Black Money Act.

5. Undertakings and Securities Provided:
The Petitioner provided affidavits from Indian Hydro Electric Power Private Limited and Cobol Technologies Private Limited, offering their assets as security. The Court accepted the undertakings and directed that status quo be maintained regarding the companies' properties. The Petitioner was required to furnish documents of immovable properties valued over Rs. 50 crores and provide a fresh security of Rs. 5 crore in the form of an FDR.

Order:
The Court granted permission for the Petitioner to travel abroad from April 11, 2023, to April 27, 2023, subject to conditions including maintaining status quo on properties, furnishing security, and providing undertakings. The Petitioner was also required to adhere to the travel itinerary, provide active contact details, and not interfere in ongoing FT&TR references or alienate assets during the travel period. The application was disposed of with these terms, and compliance was scheduled for April 6, 2023.

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