Court directs statutory authority to adjudicate challenge on foreign income disclosure by ESOP-receiving employee. Personal hearing required.

The court directed the statutory authority to adjudicate the show cause notice challenging the disclosure of foreign income/assets by an employee of a company receiving ESOPs. The authority must grant a personal hearing, address jurisdictional issues, and consider all responses within eight weeks. Enforcement of an adverse decision is stayed for eight weeks from the petitioner's receipt of the speaking order. The matter is at the show cause notice stage, emphasizing expeditious adjudication and compliance with the court's directives.

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Issues involved:
Challenge to show cause notice under Black Money Act - Jurisdiction of statutory authority - Disclosure of foreign income/assets - ESOP details in income tax return - Responses to summons and notices - Adjudication of show cause notice.

Analysis:
The case involves a challenge to a show cause notice dated 12.09.2022 under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 [2015 Act]. The petitioner, an employee of Vodafone Idea Ltd., received stock options from the parent company, Vodafone Group PLC. The petitioner disclosed the Employee Share Option Plan [ESOP] details in the income tax return for Assessment Year (AY) 2016-17. The petitioner argues that there was no undisclosed foreign income or assets triggering the 2015 Act provisions. The petitioner has responded to summons and notices issued since 2019, highlighting no undisclosed income or assets. The court directed the statutory authority to adjudicate the show cause notice, considering the responses provided by the petitioner. The authority must grant a personal hearing before passing a speaking order. The authority should specifically address the jurisdictional issue raised by the petitioner. If the order is adverse, its enforcement is stayed for eight weeks from the receipt of the speaking order.

The court noted the ongoing inquiry since 2019 and the petitioner's multiple responses to the revenue's queries. The statutory authority must consider all responses and earlier replies before adjudicating the show cause notice. The court emphasized the need for expeditious adjudication, not exceeding eight weeks from the judgment's receipt. The authority must issue a notice for a personal hearing to the petitioner or their representatives before passing a speaking order. The authority's decision must address the jurisdictional challenge raised by the petitioner regarding undisclosed income/assets. If the order is unfavorable, its implementation is postponed for eight weeks from the petitioner's receipt of the speaking order.

The court found that the matter was at the show cause notice stage, directing the statutory authority to proceed with adjudication based on the responses and replies provided by the petitioner. The authority is required to grant a personal hearing before issuing a speaking order. The authority must specifically address the jurisdictional challenge raised by the petitioner. If the decision is adverse, its enforcement is stayed for eight weeks from the petitioner's receipt of the speaking order. The parties are instructed to act based on the digitally signed copy of the judgment for further proceedings.

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