In a setback to Income Tax department, today the Madras High Court quashed a criminal prosecution against family members of former finance minister P Chidambaram’s family members. The Income Tax department had filed charge sheets against P Chidambaram’s wife Nalini Chidambaram, son Karti Chidambaram, daughter-in-law Srinidhi under the Black Money act.
The department had filed the charge sheets the three persons and one firm under black money act in May this year alleging non-disclosure of foreign assets and bank accounts held by them. According to the charge sheet, the trio didn’t disclose that they jointly owned a property worth ₹5.37 crore in Cambridge, UK. And it was also alleged that Karti had undeclared overseas bank accounts and investments.
The trio had filed an appeal at the Madras High Court against this charge sheet by Income Tax department. Initially, the appeal was heard by the then Chief Justice Indira Banerjee, and the court had reserved its order on June 27. But as Indira Banerjee was elevated to Supreme Court subsequently, the order could not be pronounced.
The appeal was then referred to a two-judge bench of Justice S Manikumar and Justice Subramonium Prasad for rehearing. After concluding the hearing, the bench had reserved its order on September 3.