CHENNAI: In a setback to former union minister P Chidambaram's rapid family members, the Madras top court docket on Wednesday refused to stick prosecution initiated towards them by means of the source of revenue tax division beneath Black Money Act.
On May 11, the I-T division filed a complaint towards Chidambaram’s spouse Nalini, son Karti and daughter-in-law Srinidhi for alleged non-disclosure of overseas assets in the particular court docket for economic offences, Chennai.
The complaints were filed beneath segment 50 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act. According to the I-T division, Nalini, Karti and Srinidhi have failed to divulge a property they jointly own in Cambridge, in the United Kingdom price Rs 5.37 crore.
Apart from this, the department has alleged that Karti had failed to divulge an overseas checking account he holds with Metro Bank in UK and investments he had made in Nano Holdings LLC, USA.
Besides this, Karti has additionally failed to divulge investments made by means of Chess Global Advisory, a company co-owned by means of him which quantities to an offence beneath the Black Money Act, the department mentioned in its complaint.
Assailing the move, the trio moved the top court docket in search of intervening time order staying the prosecution and to direct the department to offer a replica of the complaint to them.
When the plea got here up for hearing, senior suggest AR L Sundresan for the petitioners mentioned, "Law mandates that a special court must be established to hear cases under the Black Money Act. But so far the state has not notified any such special court. The special court for economic offences does not have jurisdiction to take cognizance of the complaint."
Moreover, the authority who has ordered sanction for the prosecution has no such authority beneath the Income Tax Act, he added.
Opposing the plea standing suggest for I-T submitted that the complaint is yet to be numbered and once it's numbered copies would be furnished to the petitioners. The plea is simply too untimely, he added.
Recording the submissions, Justice S Baskaran refused to pass any intervening time order. He then directed the I-T to file counter and posted the plea to June 5 for additional hearing.
It all began when the department issued notices to the trio beneath the Act. Immediately, the family moved the top court docket in search of to restrain the department from starting up prosecution towards them in the particular court docket.
They claimed that they have got duly disclosed the entire main points of such homes and bank accounts in overseas international locations of their returns and alleged that the department has initiated such complaints handiest to bother and humiliate them.
But denying the allegation, the department mentioned that the complaints had been initiated in accordance with data equipped by means of the CBI.
It added that issuing understand beneath the Act and sanctioning prosecution are fully two other aspects and that the department can sanction prosecution however pending inquiry on assessment as the Act does no longer prohibit the department from doing so.
On May 11, the I-T division filed a complaint towards Chidambaram’s spouse Nalini, son Karti and daughter-in-law Srinidhi for alleged non-disclosure of overseas assets in the particular court docket for economic offences, Chennai.
The complaints were filed beneath segment 50 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act. According to the I-T division, Nalini, Karti and Srinidhi have failed to divulge a property they jointly own in Cambridge, in the United Kingdom price Rs 5.37 crore.
Apart from this, the department has alleged that Karti had failed to divulge an overseas checking account he holds with Metro Bank in UK and investments he had made in Nano Holdings LLC, USA.
Besides this, Karti has additionally failed to divulge investments made by means of Chess Global Advisory, a company co-owned by means of him which quantities to an offence beneath the Black Money Act, the department mentioned in its complaint.
Assailing the move, the trio moved the top court docket in search of intervening time order staying the prosecution and to direct the department to offer a replica of the complaint to them.
When the plea got here up for hearing, senior suggest AR L Sundresan for the petitioners mentioned, "Law mandates that a special court must be established to hear cases under the Black Money Act. But so far the state has not notified any such special court. The special court for economic offences does not have jurisdiction to take cognizance of the complaint."
Moreover, the authority who has ordered sanction for the prosecution has no such authority beneath the Income Tax Act, he added.
Opposing the plea standing suggest for I-T submitted that the complaint is yet to be numbered and once it's numbered copies would be furnished to the petitioners. The plea is simply too untimely, he added.
Recording the submissions, Justice S Baskaran refused to pass any intervening time order. He then directed the I-T to file counter and posted the plea to June 5 for additional hearing.
It all began when the department issued notices to the trio beneath the Act. Immediately, the family moved the top court docket in search of to restrain the department from starting up prosecution towards them in the particular court docket.
They claimed that they have got duly disclosed the entire main points of such homes and bank accounts in overseas international locations of their returns and alleged that the department has initiated such complaints handiest to bother and humiliate them.
But denying the allegation, the department mentioned that the complaints had been initiated in accordance with data equipped by means of the CBI.
It added that issuing understand beneath the Act and sanctioning prosecution are fully two other aspects and that the department can sanction prosecution however pending inquiry on assessment as the Act does no longer prohibit the department from doing so.
Madras HC refuses relief to Chidambaram and family in black money case
![Madras HC refuses relief to Chidambaram and family in black money case]()
Reviewed by Kailash
on
May 30, 2018
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