Proceeds of Crime in Money Laundering Cases Not Taxable Income, PMLA Overrides IT Act: Delhi High Court

Conflict between overlapping laws can often raise serious questions on jurisdiction and priority. In a landmark ruling, the Delhi High Court, in the case of Asst. Commissioner of Income Tax v. State & Others, clarified that when proceeds of crime are under investigation by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act, 2002 (PMLA), the Income Tax Department cannot lay claim to such funds under the Income…