Posts

Showing posts from August, 2024

Case law (SC) -- PMLA --Article 21 being a higher constitutional right, statutory provisions should align themselves to the said higher constitutional edict. Section 45 of PMLA needs to be understood and applied accordingly. The principle that, “bail is the rule and jail is the exception” is only a paraphrasing of Article 21 of the Constitution of India, which states that no person shall be deprived of his life or personal liberty except according to the procedure established by law. Where the accused has already been in custody for a considerable number of months and there being no likelihood of conclusion of trial within a short span, the rigours of Section 45 of PMLA can be suitably relaxed to afford conditional liberty.

PREM PRAKASH v. UOI [2024 INSC 637] dated 28.08.2024 "All that Section 45 of PMLA mentions is that certain conditions are to be satisfied. The principle that, “bail is the rule and jail is the exception” is only a paraphrasing of Article 21 of the Constitution of India, which states that no person shall be deprived of his life or personal liberty except according to the procedure established by law. Liberty of the individual is always a Rule and deprivation is the exception. Deprivation can only be by the procedure established by law, which has to be a valid and reasonable procedure. Section 45 of PMLA by imposing twin conditions does not re-write this principle to mean that deprivation is the norm and liberty is the exception. As set out earlier, all that is required is that in cases where bail is subject to the satisfaction of twin conditions, those conditions must be satisfied. 12. Independently and as has been emphatically reiterated in Manish Sisodia (II) (supra) relying on R...

CBDT issued press release clarifying that Income Tax Clearance Certificate u/s 230(1A) required by residents domiciled in India before leaving the country only in cases (a) where a person is involved in serious financial irregularities or (b) where a tax demand of more than Rs.10 lakhs is pending which is not stayed by any authority.

"As per section 230 of the Act, every person is not required to obtain a tax clearance certificate. Only certain persons, in respect of whom circumstances exist which make it necessary to obtain a tax clearance certificate, are required to obtain the said certificate. This position has been in the statute since 2003 and remains unchanged even with the amendments vide Finance (No. 2) Act, 2024.  In this context, the CBDT, vide its Instruction No. 1/2004, dated 05.02.2004, has specified that the tax clearance certificate under Section 230(1A) of the Act, may be required to be obtained by persons domiciled in India only in the following circumstances:  (i) where the person is involved in serious financial irregularities and his presence is necessary in investigation of cases under the Income-tax Act or the Wealth-tax Act and it is likely that a tax demand will be raised against him, or  (ii) where the person has direct tax arrears exceeding Rs. 10 lakh outstanding against hi...