Delhi HC Upholds Look Out Circular in Major Tax Evasion Case

Allowing the Revenue's appeal, the Delhi High Court set aside the Single Judge's order quashing the Look Out Circular issued against an assessee facing investigation for alleged large-scale tax evasion and undisclosed foreign assets. 

The Court held that while judicial review of an LOC is permissible, it is confined to examining the legality and reasonableness of the decision-making process. 

In matters involving serious economic offences and fiscal interests, courts must exercise considerable restraint and defer to the executive's assessment unless the action is arbitrary, mala fide or unsupported by material.