PC’s kin plea to restrain I-T dept dismissed

The Madras High Court on Friday dismissed a petition filed by Nalini Chidambaram, Karti Chidambaram and Srinidhi Chidambaram (wife, son and daughter-in-law respectively of senior Congress leader P Chidambaram) questioning the prosecution initiated against them by the Principal Chief Commissioner of Income Tax, Chennai under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Taxes Act 2015.

Justice TS Sivagnanam, who heard AP Sreenivas, senior standing counsel of the Income Tax Department, said a writ of prohibition could not be issued based on the arguments by the petitioners that theirs was the only family in the country to hve been subjected to multiple searches within a span of two years.

The standing counsel of the IT Department told the court that the officials were enquiring into business dealings carried out by the petitioners for purchasing properties in UK and issuance of summons could not become a reason to seek a writ of prohibition against prosecution.

Justice Sivagnanam while dismissing the petition filed by the Chidambaram family also asked the Department of Income Tax to complete the probe within the time limits prescribed under the Black Money Act.

The Income Tax department had issued notices seeking detail of documents in respect of the property at Cambridge in UK and with regard to certain investments in Nano Holdings LLC, USA on various dates.

The Chidambarams had told the court that the Reerve Bank of India had introduced the Liberalised Remittance Scheme in February 2004 to facilitate Indians to remit funds abroad for permitted current or capital account transactions.

They further stated that  bankers were permitted to allow remittances upto $1.25 lakh per year under the LRS and the limit was raised to $2.5 lakh last year. The petitioners made use of this facility and  jointly purchased property worth  5.35 lakh Pound Sterling  at Cambridge.