STATUTES

SECTION ACT EXPLANATION

Section 139(1) Income Tax Act Individuals with total income
exceeding the exemption
limit.
Any entity, whether private,
public, domestic, or foreign,
doing business in India.
Firms, including LLPs and
Unlimited Liability
Partnerships.
Residents with assets located
outside India or with signing
authority for foreign
accounts.
HUFs, AOPs, and BOIs if their
total income exceeds the
exemption limit.

Section 276C(2) Income Tax Act if a person wilfully attempts

to evade the payment of any
tax, he shall be punishable
with imprisonment for a
term not less than three
months which may extend to
two years

Section 278B2 Income Tax Act every person who, at the

time the offence was
committed was in charge of
and was responsible to the
company for the conduct of
the business of the company
as well as the company shall
be deemed to be guilty

Section 120A IPC Definition of criminal

conspiracy

Section 120B IPC Punishment for criminal

conspiracy- death penalty or
imprisonment upto 3 years

Section 50 Prevention of Money Section 50 empowers the

Laundering Act Enforcement Directorate (ED)
to summon an accused and
record a statement. The
statement is admissible as
evidence in court.

Section 65 Prevention of Money The provisions of the Code of

 Laundering Act Criminal Procedure, 1973 (2
of 1974) shall apply, if they
are not inconsistent with the
provisions of this Act, to
arrest, search and seizure,
attachment, confiscation
investigation, prosecution
and all other proceedings
under this Act

SECTION 126 INDIAN EVIDENCE ACT ATTORNEY CLIENT PRIVILEGE

SECTION 5 PMLA ATTACHMENT OF PROPERTY

SECTION 11 PMLA POWER REGARDING

PRODUCTION OF
DOCUMENTS

SECTION 3 PMLA OFFENCE OF MONEY

LAUNDERING

SECTION 438 CRPC GRANT OF ANTICIPATORY

BAIL BEFORE THE HC

DEFINITIONS
DOUBT MEANING
Receivables amounts owed to a company by its customers

money that the company is entitled to receive

from its customers for the sales made on credit
terms

Advance tax Advance tax refers to the system of paying

income tax in installments throughout the
financial year, rather than paying it all at once at
the end of the year. It is also known as "pay-as-
you-earn" tax, as taxpayers are required to
estimate their total annual income and tax
liability and pay the tax in advance based on
those estimates.

TAX RETURN A tax return is a formal document filed with the

tax authorities by individuals, businesses, or
entities to report their income, expenses,
deductions, and tax liability for a specific
period, usually a fiscal year. The purpose of
filing a tax return is to calculate the amount of
 income tax owed to the government or to claim
a refund if the taxpayer has overpaid their
taxes.

SELF ASSESSED TAX Self-assessed tax refers to the system in which

taxpayers are responsible for calculating and
determining their own tax liability, rather than
having the tax authority assess their tax liability
for them. Under this system, taxpayers are
required to report their income, deductions,
and tax liability accurately based on their own
calculations and records.

In self-assessment tax regimes, taxpayers are

typically required to file tax returns, either
online or on paper, providing detailed
information about their income sources,
deductions, and any tax credits they are eligible
for. They calculate the total tax amount they
owe based on the applicable tax rates and
rules.
ANTICIPATORY BAIL APPLY FOR BAIL BEFORE GETTING ARRESTED

TIMELINE
DATES EVENTS
2014-15 Income Tax Act for Assessment year

December 2017 20% of the tax liability

March 2018 50 % of the tax liability

December 2018 80% of the tax liability

August 2019 100% of the tax liability

January 13, 2019 Income Tax Department issued a show

cause notice to Soorma Forges and
Metalworks Pvt. Ltd

Reply filed by advocate dimple for Soorma

industries

August 15, 2019 Principal Commissioner of Income Tax of

the relevant jurisdiction granted sanction for
prosecution

March 31, 2020 Notice to appear before the Directorate of

 Enforcement in Delhi
April 20, 2020 To appear before ED and

April 25, 2020 Directorate of Enforcement attached

Dimple’s bank account in which she had
received her legal fees

I ISSUES
R RULES
A APPLICATION
C CONCLUSION

DOUBTS

QUESTIONS ANSWERS

1. Dimple asked for physical hearings why

did the Principal Commissioner of
Income Tax ignore it ?

2. Can ED and Income Tax Department

persecute the same person twice?
(will this cause double jeopardy?)

3. WHAT DID DIMPLE AND HER CLIENT DO

B/W JANUARY 13 TO AUGUST 15, 2019?
DID THEY FILE THE REMAINING TAX?
4. Money was allegedly being laundered
by ARYA SOORMA why did the
Directorate of Enforcement attach
Dimple’s property?

STRENGTHS
WEAKNESSES
Advocate Dimple refused to go to Delhi to PRINCIPAL COMMISSIONER OF INCOME TAX
appear before the officers of the Directorate DID NOT ALLOW HER PHYSICAL HEARING.
taking a stand that the officers of the THERE WAS NO SUBSTANTIAL REASON.
Directorate are police officers

Attached the offender’s lawyer’s property offences under the Income-tax Act, 1961 are
instead of that of the offender not scheduled under the PMLA.

SHE HAS PROTECTION PROVIDED TO WOMEN

UNDER CRPC ACCORDING TO SECTION 65 OF
PMLA

SHE HAS ATTORNEY CLIENT PRIVILEGE

We did not give prior intimation before

attaching her bank account