Undisclosed foreign assets' retrospective taxation challenged; undisclosed foreign income is chargeable prospectively under the Black Money law.
The Act charges tax on undisclosed foreign income prospectively for assessment years after the statutory effective date, while treating "undisclosed foreign asset" as presently held foreign property lacking satisfactory source explanation. Several provisions-the declaration window with concessional treatment, a proviso tying valuation to the year the asset comes to the assessing officer's notice, a deeming clause treating acquisition as the notice year, and valuation rules-create ambiguity suggesting retrospective or retroactive operation for pre enactment assets. Textual constraints, limits on provisos, potential ultra vires valuation rules, and constitutional protection against ex post facto penalisation support objections to retrospective taxation of such assets. (AI Summary)