What the courts have decided on section BMA Rule 6(4), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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Prateek Chitkara v Union of India
High CourtCuts both waysNo later treatment found
There is a look-out circular against me while my Black Money Act appeal is pending. Can I get it lifted, and does the appeal need money deposited first?
The look-out circular was not quashed but was converted into an intimation of arrival and departure under clause 6(I) of the Office Memorandum dated 22 February 2021, on conditions including security over property, the Court holding that this was not a case detrimental to the economic interest of the country as there was no allegation of siphoning of public funds and no criminal proceedings had been initiated despite the demand. On the appeal, the Court recorded that no amount had been deposited under Rule 6(4) of the Black Money Rules, which requires the tax with penalty and interest on the liability not objected to by the assessee to be paid before an appeal under s.15(1) is admitted.
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Statutory position — s.15 of the Black Money Act and rule 6(4) of the Black Money Rules, 2015: what may be appealed to the Commissioner (Appeals), the thirty-day period and the one-year limit on condonation, and the rule that bars admission of the appeal unless the tax with penalty and interest on the undisputed liability has been paid
CBDT Circulars & InstructionsCuts both waysValidity unconfirmed
I want to appeal a Black Money Act assessment to the Commissioner (Appeals). Is there a pre-deposit, and if so on what amount — the whole demand or only the part I am not disputing?
On the part not objected to. Rule 6(4) of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Rules, 2015, notified by G.S.R. 529(E) dated 2 July 2015, reads: "No appeal under sub-section (1) of section 15 shall be admitted unless at the time of filing of the appeal the assessee has paid the tax alongwith penalty and interest thereon on the amount of liability which has not been objected to by the assessee." The condition is on admission, it bites at the time of filing, and it is measured by the liability not objected to — not by the whole demand. The same rule provides that the appeal is made in Form 2 (rule 6(1)), that the form, grounds and verification are signed and verified by the person authorised to sign the return of income under s.140 of the Income-tax Act (rule 6(2)), and that the appeal is accompanied by a fee of ten thousand rupees (rule 6(3)). Section 15(1) gives the right of appeal to any person objecting to the amount of tax on undisclosed foreign income and asset for which he is assessed, denying his liability to be assessed under the Act, objecting to any penalty imposed by the Assessing Officer, objecting to an order of rectification having the effect of enhancing the assessment or reducing the refund, or objecting to an order refusing to allow a claim for rectification under s.12. Section 15(3) requires the appeal to be presented within thirty days from the date of service of the notice of demand relating to the assessment or penalty, or from the date on which intimation of the order appealed against is served in any other case. Section 15(4) allows the Commissioner (Appeals) to admit a late appeal where he is satisfied that the appellant had sufficient cause for not presenting it in time and the delay does not exceed one year. Section 15(5) requires him to hear and determine the appeal and pass such orders as he thinks fit, with a proviso that an order enhancing the assessment or penalty shall not be made unless the assessee has been given a reasonable opportunity.
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Sections 15 to 19 of the Black Money Act - the appeal machinery
CBDT Circulars & InstructionsCuts both waysNo later treatment found
What are the time limits, forms and fees for an appeal under the Black Money Act, and where do they differ from the Income-tax Act?
An appeal to the Commissioner (Appeals) lies under s.15(1) against the amount of tax on undisclosed foreign income or assets, against liability to be assessed under the Act, against a penalty, and against a rectification order or a refusal to rectify. It is filed in Form 2 with a fee of Rs 10,000 within thirty days, and Rule 6(4) bars admission unless the tax with penalty and interest on the liability not objected to has been paid. An appeal to the Tribunal lies within sixty days in Form 3 with a fee of Rs 25,000, with cross-objections in Form 4 within thirty days. An appeal to the High Court on a substantial question of law lies within 120 days. The critical departure from the Income-tax Act is that the power to condone delay is capped: one year before the Commissioner (Appeals) under s.15(4) and one year before the Tribunal under s.18(5), where ss.249(3) and 253(5) of the Income-tax Act contain no such ceiling.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.
