In a bid to provide relief to former Union Minister P Chidambaram, the Madras High Court Division Bench of Justices S. Manikumar and Subramonium Prasad on Friday, quashed sanction orders issued by an income tax official for the prosecution of former Union Minister P. Chidambaram’s family under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, citing that the sanction provided was not in accordance with law.
Along with this the bench also quashed the other complaints lodged by I-T officials against Chidambaram's family before a Metropolitan Magistrate Court in Chennai.
In September, the Court reserved it's verdict in the case. Initially, the order for the same was reserved by the first bench headed by the-then Chief Justice Indira Banerjee which could not be pronounced due to paucity of time as a midst of it, the Chief Justice was elevated to the Supreme Court.
The I-T department alleged that the members of the Chidambaram family, P Chidambaram, Nalini Chidambaram, his wife, Karti Chidambaram, his son, and Srinidhi, his daughter-in-law had jointly purchased an immovable property at a cost of £5.35 lakh at Cambridge in the United Kingdom, property worth Rs. 80 lakh in the same country and asset worth Rs 3.28 crore in the US, but did not disclosed their foreign assets, under Section 50 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, following which, the the I-T department had launched prosecution against them.
Earlier to this, the single bench dismissed the individual Writ Petitions filed by the family to pre-empt launch of prosecution against them. The petitions were dismissed on the ground that a Writ of prohibition could not be issued in anticipation of an action. Following the dismissal, the family then filed plea before division bench of the Court.