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Madras HC quashes order to prosecute Chidambaram’s family members in black money case
The Income Department had given its sanction for the prosecution of former Union minister Chidambaram’s wife Nalini, son Karti and daughter-in-law Srinidhi under the Black Money Act.
The Madras high Court on Friday quashed an order allowing prosecution of Congress leader P Chidambaram’s family members in black money case, reports PTI.
The Income Department had given its sanction for the prosecution of former Union minister Chidambaram’s wife Nalini, son Karti and daughter-in-law Srinidhi under the Black Money Act.
According to the tax department, Karti had not disclosed his bank account in Metro Bank, the UK, and investments he had made in Nano Holdings LLC, USA.
The department had said Karti had failed to disclose investments made by Chess Global Advisory, a company co-owned by him, which is an offence under the Black Money Act.
It also said the trio had not disclosed Rs 5.37 crore worth of property they jointly own in Cambridge in the UK and Rs 3.28 crore worth of properties in the US.
The department initiated prosecution against them under Section 50 of the Black Money (undisclosed foreign income and assets) and Imposition of Tax Act.
When the pleas came up in June this year, Gopal Subramaniam, counsel for the petitioners, said that prima facie no offence can be made out against the petitioners under the Black Money Act.
The Act deals with undisclosed income raised from foreign assets. But in the present case, all the relevant information had been disclosed by the petitioners in their returns filed under the Income Tax Act, he said.
The petitioners filed their returns for 2016-17 in October, 2016. After the tax notices, they filed revised returns in September, 2017 rectifying the procedural mistake, which is legally permissible under the Income Tax Act, he said.
