Nod to probe against Karti Chidambaram, Chess Global Advisory directors

CHENNAI: A vacation bench of the Madras High Court on Thursday permitted the Income-Tax department to proceed with its enquiry on the show cause notice (SCN) issued to the directors of Chess Global Advisory Services Private Limited in Chennai, in which Karti, son of former Union Finance Minister P Chidambaram, is also a director, under the Black Money Act.

A bench of Justices V Bharathidasan and N Seshasayee, however, directed the department to grant a due and proper opportunity to the accused to present their case.

The court was passing the interim order on writ petitions from the company and its directors to quash the SCN dated April 13 last.

The Principal Director of Income-Tax (Investigation), Chennai, may proceed with an enquiry under the SCN or take a decision with regard to exercising his power under 55 (1) of the Black Money (Undisclosed Foreign Income and Assets) and imposition of Tax Act, 2015, unhindered by the pendency of writ petitions. However, he should keep in mind all the relevant provisions of Income Tax and the Black Money Acts and their impact and effects before taking a final decision. A due and proper opportunity may be given to the petitioners for presenting the case, the bench added.

Directing the Principal Director of Income Tax (Investigation) to file his counter, the bench posted the matter for June 5. The matter relates to the investment and advances made by the petitioners company to Totus Tennis Limited in UK and Nanoholdings LLC in USA.

According to petitioners, all the investments and the remittances made by them in the two firms had been fully disclosed both in the original and revised returns submitted to I-T department. However, on April 13 last, the SCN  was issued by the Principal Director of Income Tax (Investigation) asking why prosecution should not be sanctioned for an offence under Section 50 of the Black Money Act.

Stating that the Black Money Act is attracted only in the case of “undisclosed foreign asset” or “undisclosed foreign income”,  the petitioner said there was no undisclosed foreign asset or income and hence sought to quash the notice. The petitioners have also filed another writ petition challenging the validity of Section 50 of the Black Money Act.

PC family challenges single judge order

Chennai: Nalini, wife of former Union Finance Minister P Chidambaram, her son Karti and daughter-in-law Srinidhi, have moved the Madras High Court, challenging an order, dated April 12 last, of a single judge, refusing to restrain the Income-Tax department from sanctioning prosecution against them under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax 2015 Act. Originally, the trio had filed three separate petitions.

Plea to dispense with Nalini’s appearance

Chennai: The plea from Nalini, wife of former Union Minister P Chidambaram and senior advocate, to dispense with her appearance before the Enforcement Directorate (ED) in connection with the Kolkata-based Saradha chit fund scam is likely to be heard on Friday. A vacation bench of Justices V Bharathidasan and N Seshasayee, before which her appeal challenging the rejection order of a single judge came up on Thursday, initially said that it was not inclined to hear appeal.