P&H High Court allows ED to access info shared by France with IT Department in Amarinder Singh case

The Punjab and Haryana High Court on Wednesday allowed the Enforcement Directorate (ED) to access information shared by France with India's Income Tax Department in the case concerning alleged foreign assets of former Punjab Chief Minister Captain Amarinder Singh and his son Raninder Singh [Amarinder Singh v Income Tax Department and Another]. 

Justice Tribhuvan Dahiya rejected Singh’s argument that disclosure of secret information provided by the French government would circumvent the treaty restrictions between India and France because the information was not meant for the ED. 

“In the instant case, as discussed hereinbefore, there is no restriction on the ED to access the information/documents placed on record before the Magistrate by the IT Department for the purpose of investigation. Therefore, it cannot be said that the ED is trying to procure the documents by circumventing the Agreement in question,” the Court held. 

It observed that if the disclosure of information causes any violation of the terms of the 1994 “Agreement for Avoidance of Double Taxation with France”, it is for the IT Department to oppose it on that ground and not for the Singhs. 

The case relates to the complaints filed by the IT Department against Amarinder Singh and his son under Section 277 of the Income Tax Act and various sections of the Indian Penal Code, alleging undisclosed foreign assets and accounts linked to entities in Switzerland and Dubai.

The ED, investigating related matters under FEMA, sought access to the documents submitted by the IT Department to the trial court and containing information provided by the French government.

First, the magistrate court and then the revisional court allowed the ED’s request. 

Amarinder Singh and Raninder Singh then moved the Court challenging the trial court orders. 

They argued that ED is a stranger to the IT proceedings and disclosing the secret information provided by France violated the Indo-France Double tax avoidance treaty, specifically Article 28 regarding confidentiality of information received. 

However, the Court rejected the petitions, noting that the information was being shared with the an organ of the State for the purpose of investigation and not for public dissemination. 

“The ED is permitted to inspect the record of the complaints before the Magistrate and access the information/documents; however, the same shall not be disseminated publicly unless permitted in accordance with law,” the Court ruled. 

Advocates Gurmohan Singh Bedi, Amandeep S Talwar, Pawandeep Singh, Anand V Khanna and Ambika Bedi appeared for Amarinder Sing and Raninder Singh. 

ED and IT Department were represented through Special Counsel Zoheb Hossain, Senior Panel Counsel Lokesh Narang and advocate Vipul Joshi. 

[Read Order]