The SAT’s ruling in Alpesh Vasanji Furiya v. SEBI is a significant clarification of the relationship between securities enforcement and tax law in India. By holding that income tax paid on unlawful gains cannot be offset against SEBI-ordered disgorgement, the tribunal has maintained the purity and effectiveness of disgorgement as an equitable remedy — ensuring that tax compliance cannot be deployed as a device to dilute the amount recoverable by SEBI in enforcement proceedings.
