The Madras High Court has allowed the Income Tax department to proceed against Karti Chidambaram and others under the black money act. According to reports, the Madras HC on Thursday granted permission to the I-T department to probe Karti and other directors of the Chess Global Advisory Ltd under the act.
The HC bench comprising Justices V Bharatidasan and N Sheshasayee, however, has reportedly directed the Principal Director of Income -Tax (investigations) to let Karti Chidambaram and the others have a proper opportunity to present their case. The HC bench was hearing a petition filed by Karti and the other directors of the company against a show cause notice issued by the I-T department to them on April 13th. The bench has reportedly posted the matter to June 5th for further hearing.
According to reports, Karti and the other petitioners had also filed another petition challenging the validity of section 50 of the black money act mentioned in the show cause notice against them. The section 50 of the black money act concerns undisclosed foreign assets and income. The Principal Director of the I-T department reportedly had issued a show cause notice to Karti and the others asking why prosecution should not be sanctioned against them under the said act. The alleged undisclosed incomes and assets are related to the investments made by the concerned individuals through the company to Totus Tennis Ltd of UK and Nano Holdings LLC of the US. The petitioners had claimed that the I-T department has issued them the notice despite all the investments, remittances and holdings being disclosed in their I-T returns.
The petitioners had reportedly argued that the black money act can be warranted only if there are ‘undisclosed assets and incomes’. The HC bench in its order has reportedly asked the principal director of I-T to file a counter and proceed with any inquiry or take a decision exercising his powers under the section 55(1) of the black money act.
It is notable here that Karti is already facing probe and is currently on bail in the INX Media case and also under probe in the Aircel-Maxis case. On May 2nd, Delhi’s Patiala House Court had extended his interim protection from arrest till July 10.