October 15, 2018:
On Friday, Madras High Court extended an interim order hand out with the appearance of former Union Minister P Chidambaram’s family members before a Special Court on November 2 in case of ‘non-disclosure’ of Foreign Assets filed against them by the I-T department.
Division Bench comprising of Justice S Manikumar & Justice Subramonium Prasad, has already reserved its order on the main appeals moved by Chidambaram’s wife, son & daughter-in-law, challenging the prosecution initiated against them by the Income Tax Department under the Black Money Act.
On 14 September, the Court in an Interim Order dealt out with the appearance of Chidambaram’s wife Nalini, his son, Karti & Daughter-in-Law Srinidhi before the Special Court for Economic Offences Cases till October 12.
The Interim Order will come out on Friday, it was extended up to November 2.
The issue pertains to alleged non-disclosure of overseas assets & bank accounts held by them.
According to the I-T department, the 3 had failed to disclose a property they jointly own in Cambridge in the UK, worth Rs 5.37 crore, which amounted to an offence under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act.
Department has also alleged that Karti Chidambaram had failed to disclose an Overseas Bank Account he holds with Metro Bank in the UK & investments he had made in Nano Holdings LLC, USA.
He had also “failed” to disclose investments made by Chess Global Advisory, a company co-owned by him, which amounts to an offence under the Black Money Act,
Though the Department has informed in its complaint filed in the Special Court in May.
Assailing the prosecution, the 3 had approached the High Court. As a single Judge Bench refused any relief, they moved an appeal.
On June 27, the first bench headed by then Chief Justice Indira Banerjee reserved its order on the appeal. However, as Justice Banerjee was later elevated to the Supreme Court, orders could not be pronounced.
The appeal was then referred to the bench headed by Justice Manikumar for fresh hearing.
During the hearing by Justice Banerjee, counsel for the appellants had contended that Prima Facie no offence can be made out against them 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.