The court gave the relief to 75-year-old Modi, a South Delhi resident, after he appeared before it in pursuance to summons issued against him in two alleged tax evasion cases.
He was granted bail on furnishing of a personal bond of Rs 50,000 and a surety of like amount.
The court also directed the industrialist not to leave the country without giving it prior intimation.
It had earlier taken cognisance of the department’s complaint and summoned Modi as an accused, saying that “prima facie” offence was made out against him under the provisions of the I-T Act.
The complaint was filed for the alleged offences under sections 276C(1)(ii) (willful attempt to evade tax), 277 and 277(ii) (false statement in verification) of the I-T Act for the assessment years 2006-07 and 2007-08 with identical allegations against the accused.
The department alleged that Modi was holding an account with HSBC Bank in Geneva, which was opened on January 30, 2001.
It claimed a balance of over Rs 4.9 crore and over Rs 18.7 lakh was there in that account for the assessment years 2006-07 and 2007-08 respectively. The department further said that neither the foreign account, nor the balance was disclosed by the accused in his return of income.
It claimed a search was conducted at the premises of the accused in November 2011 and he was asked about his undisclosed foreign bank account. In his statement recorded on oath, he had denied having any account outside India but showed willingness to pay tax, it added.
The department alleged it had issued a notice to him in July 2013 calling for details of his foreign account with HSBC Bank but he willfully did not disclose it.
A penalty of Rs 10,000 was levied on Modi for non- compliance of the department’s notice, it said.
It said the industrialist had filed an application seeking stay on his prosecution, which was dismissed by the Income Tax Appellate Tribunal.
Seeking his prosecution, the complaint alleged that he had willfully attempted to evade tax by not disclosing the income in foreign bank account and made a false statement on verification.
PTI