The Supreme Court on Tuesday set aside the Delhi High Court order that had stayed the applicability of the Black Money law with retrospective effect.
A bench of Justice Arun Mishra, M R Shah and B R Gavai asked the High Court to decide afresh the writ petition filed by advocate Gautam Khaitan, an accused in the AgustaWestland scam case, related to purchase of VVIP chopper.
Justice Gavai pronounced the order on behalf of the bench on a special leave petition filed by the Union government.
The top court had on May 21 stayed the high court's order.
The Union government, led by Solicitor General Tushar Mehta, had contended the high court had stayed the rules on the applicability of the Black Money law.
This would have large ramifications, he said.
The high court had on May 16 passed its interim order restraining the government and the Income Tax department from taking further action against advocate Khaitan in Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
Khaitan had contended the Centre's notification stating the Act would come into force since July 1, 2015, instead of April 1, 2016, was ultra vires of the Act.
It was alleged that Khaitan, an accused in the VVIP chopper deal scam, had deposited Rs 6,000 crore in offshore accounts.