Madras High Court Quashes Income Tax Proceedings Against Karti Chidambaram and his Wife

Madras HC quashes Income Tax reassessment proceedings against Karti Chidambaram and Srinidhi Chidambaram 

Justice N Sathish Kumar from Madras High Court quashed income tax reassessment proceedings initiated against Karti Chidambaram (Member of Parliament from Sivaganga,) and his wife Srinidhi Chidambaram in a matter alleging non-disclosure of cash transactions made pursuant to a property sale. The amount involved in the said transaction is said to be around INR 7 crore. 

Initially, this matter was presented before an Economic Offences Court, which was later transferred to a Special Court for offences by MPs and MLAs wherein the discharge application filled in this matter was rejected. This led to Mr Karti Chidambram and his wife Srinidhi Chidambram approaching Madras HC for relief.

Deputy Director not competent authority to initiate the re-assessment Madras HC

Madras HC allowed applications against the Special Court order rejecting their discharge applications. The Bench labelled the Income Tax proceedings against the Mr and Mrs Chidambram as premature. Before quasing the proceedings against the high profile couple,  It asserted the fact that the Deputy Director of the Income Tax Department was not the competent authority for the purpose of initiating reassessment proceedings.