Black money case: High Court reserves order on pleas by Chidambaram's family

The Madras High Court today reserved orders on pleas moved by former Union minister P Chidambaram's wife, son and daughter-in-law challenging the prosecution initiated against them by Income Tax department, under the Black Money Act.

Tax authorities had filed a complaint against Chidambaram's wife Nalini, son Karti and daughter-in-law Srinidhi over alleged non-disclosure of overseas assets, which is an offence under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act.

When the pleas came up, Gopal Subramaniam, counsel for the petitioners, contended that prima facie no offence can be made out against the petitioners 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, he said.

Originally, the petitioners filed their returns for 2016-17 in October, 2016.

Subsequently, after the I-T issued notices under the Black Money Act, the petitioners filed revised returns in September, 2017 rectifying the procedural mistake, which is legally permissable under the Income Tax Act, he said.

Opposing the arguments, the additional solicitor general submitted that a revised return filed by the petitioners after issuance of notices under the Black Money Act cannot substitute the original return.

This apart, he clarified that action under IT Act and prosecution under the Black Money Act were entirely different proceedings entitled to the department.

"It is the burden of the petitioners to prove that the omissions or procedural mistakes in the original return were not wilful," he submitted.

Recording the submissions, the first bench of Chief Justice Indira Banerjee and Justice P T Asha said they were reserving their verdict.