Punjab & Haryana High Court Dismisses Ex-MLA Dilbag Singh's Plea Challenging ED's Provisional Attachment Order In Illegal Mining Case

The Punjab and Haryana High Court has dismissed a plea filed by Indian National Lok Dal's former MLA Dilbagh Singh and others, challenging the Provisional Attachment Order (PAO) passed by the Enforcement Directorate in connection with money laundering allegations in an illegal mining case.A division bench of Chief Justice Sheel Nagu and Justice Anil Kshetarpal opined that the PAO complied with the mandatory provisions of Section 5(1) of PMLA which allows the Director or any other officer not...

PMLA | Bail Can Be Granted To Accused If Trial Is Not Likely To Be Concluded In Near Future: Punjab & Haryana High Court

The Punjab & Haryana High Court has said that bail can be granted to the accused under the Prevention of Money Laundering Act, 2002 (PMLA) if the trial is not likely to be concluded soon if the circumstances so warrant.These observations were made while granting bail to Aam Admi Party (AAP) MLA Jaswant Singh in a money laundering case.Justice Mahabir Singh Sindhu noted that Singh has been in custody since 06.11.2023. The complaint was filed on 04.01.2024. As per the stand taken by the E.D....

Punjab & Haryana High Court Grants Bail To AAP MLA Jaswant Singh In Money Laundering Case

The Punjab & Haryana High Court on Monday granted bail to Aam Admi Party (AAP) MLA Jaswant Singh in money laundering case. Singh is an MLA from Punjab's Amargarh constituency and was arrested by ED in November, 2023.Justice Mahabir Singh Sindhu granted bail to Singh. However a detailed order is awaited.Jaswant Singh was booked under PMLA for allegedly being a director and guarantor of a company M/s TCL, which had obtained loan and credit facilities of over Rs.46 crores.The amount is...

Punjab & Haryana High Court Directs ED To Arrest Former Congress MLA Dharam Singh Chhoker In PMLA Case

The Punjab & Haryana High Court directed the Enforcement Directorate (ED) to forthwith arrest former Congress MLA from Haryana Dharam Singh Chhoker accused in a Prevention of Money Laundering Act, 2002 (PMLA) case.It is alleged that the Company owned by Chokker and his family, Mahira Infratech Pvt Ltd had collected Rs 363 crore from homebuyers for the construction of 1,500 flats to be delivered in 2021-2022. The company accounts, funds were allegedly siphoned off as advance loan to other...

P&H HC Nixes Asst Commissioner's Order For Ignoring Direction To Hear Case On Merits, Calls For Strict Action Against Insubordination In CGST Hierarchy

The Punjab and Haryana High Court overturned an Assistant Commissioner's order for dismissing an application as time-barred, noting he overstepped his authority despite the Joint Commissioner's directive to consider it on merits. The Bench of Justice Sanjeev Prakash Sharma observed that “Assistant Commissioner, a subordinate officer has refused to examine the case on merits and again dismissed the application as time barred. Such an approach is the result of the virtual failure of...

ED Arrest Illegal If Not Based On Well Documented 'Reason To Believe' U/S 19 PMLA: Punjab & Haryana High Court

The Punjab & Haryana High Court has dismissed the plea of an industrialist accused of money laundering, challenging ED arrest, observing that grounds of arrest explicitly reveal and point to the effect that the Arresting Officer had conveyed his intention, reasons, grounds and belief to arrest the petitioner.Neeraj Saluja was accused of illegally diverting over Rs.1,500 crores from the loan amount for a purpose other than it was sanctioned.Justice Anoop Chitkara explained, "Any arrest shall...

Society Imparting Knowledge Or Skills Qualifies For 'Education' Label, Entitled To Exemption Under Section 12A Of Income Tax Act: Punjab & Haryana High Court

The Punjab and Haryana High Court held that a society that imparts knowledge or skills qualifies for the 'education' label under the Income Tax Act, making it eligible for tax exemptions under Section 12A of the Income Tax Act, 1961.The Division Bench of Justices Sanjeev Prakash Sharma and Sanjay Vashisth observed that “……Vocational training has been now recognized to be an important as any other filed of education, and it is for this reason that National Council for Vocational Training has...

ED Interrogations Lasting 14 Hrs "Not Heroic", Violate Human Dignity: Punjab & Haryana HC While Declaring Congress MLA's Arrest Illegal

The Punjab and Haryana High Court today asked the Enforcement Directorate to take remedial measures and sensitize its officers to follow some "reasonable time limit" for interrogations of suspects under PMLA, in one go.Justice Mahabir Singh Sindhu said ED interrogation lasting for upto 15 hours in this case "is not heroic...rather it is against the dignity of a human being." For future, the Court directed the ED to observe the mandate of right to life and liberty, which includes right to...

Appeal Dismissed For Non-Payment Of Pre-Deposit; Revenue Can't Challenge Restoration After Accepting Deposit: Punjab and Haryana High Court

The Punjab and Haryana High Court stated that if the appeal of the assessee was previously dismissed due to non-payment of the pre-deposit, and they have since made that payment, which has been accepted by the Revenue, then the Revenue cannot later challenge the restoration of the appeal.The Division Bench of Justices Sanjeev Prakash Sharma and Sanjay Vashisth observed that “Tribunal can be said to be functus officio only after it decides any appeal on merits. If the appeal has been only...

Educational Trust Using Earnings For Educational Advancement Entitled To Benefits Under Section 12AA Of Income Tax Act: Punjab & Haryana High Court

The Punjab and Haryana High Court ruled that an institute registered as an educational trust, using its earnings solely for educational advancement, should not be denied the benefits of Section 12AA of the Income Tax Act, 1961.The Bench of Justices Sanjeev Prakash Sharma and Sanjay Vashisth observed that “the institute is a duly registered educational trust and whatever earnings it receives are also utilized for the purpose of advancement of education, the institution could not have been...

Interest Can Be Waived In Situations Beyond Assessee's Control In Timely Filing Of Returns: Punjab And Haryana High Court

The Punjab and Haryana High Court ruled that interest for late filing of income tax returns can be waived in situations where the delay was beyond the control of assessee. The Bench of Justices Sanjeev Prakash Sharma and Sanjay Vashisth observed that “….while exercising the discretion by the Settlement Commission, no reasons have been assigned as to why the interest has been reduced by 50% only, and as to why the complete interest has not been waived off for the assessment year...

ITO's Personal Opinion In Prior Assessment Not A Valid “Reason To Believe” For Reopening Assessment: Punjab & Haryana High Court

The Punjab and Haryana High Court while quashing the reopening proceedings initiated under Section 148 of the Income Tax Act stated that merely on account of there being an error found based on a personal opinion of the Income Tax Officer in relation to the earlier assessment, cannot be a reason to believe for initiating reassessment. The Bench consists of Justices Sanjeev Prakash Sharma and Sanjay Vashisth observed that “merely because a new assessing officer may not be happy with...