Case Law Details
Jayant Nanda Vs Union of India (Delhi High Court)
In a recent ruling, the Delhi High Court has quashed a Look Out Circular (LOC) issued against Jayant Nanda, a Non-Resident Indian (NRI) businessman residing in Dubai, United Arab Emirates. The case, titled Jayant Nanda Vs Union of India, saw Nanda challenging the LOC dated 22nd January 2020, which was initiated at the request of the Deputy Director, Income Tax (Investigation).
Nanda, an Indian citizen holding an Indian Passport, was implicated in a probe initiated by the Income Tax Department under Section 132 of the Income Tax Act, 1961. The investigation targeted the Suri Family of the Lalit Hotels Group, including Nanda, with allegations of evading disclosure of significant foreign assets and income amounting to Rs. 1400 crores in offshore jurisdictions. It was alleged that Nanda, leveraging his NRI status, established offshore institutions/trusts to divert unaccounted assets/income, thus circumventing Indian revenue authorities.
The issuance of the LOC against Nanda was based on the findings of the investigation and subsequent evidence collected by the Income Tax Department. Despite multiple summons issued to Nanda between January 2020 and March 2022, the petitioner had not been called for investigation since the latter date, prompting questions about the necessity of the continued LOC.
Nanda’s counsel argued that since the petitioner had complied with all summons and no further investigation had been initiated for over two years, there was no justification for the ongoing LOC. Moreover, the counsel highlighted that a similar LOC against Ms. Jyotsana Suri had been quashed, subject to certain conditions.
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