Chennai, Nov 2 : In a major relief to former Union Finance Minister P. Chidambaram's family, the Madras High Court on Friday quashed the prosecution proceedings initiated by the Income Tax Department under the Black Money (Undisclosed Foreign Income and Assets) And Imposition of Tax Act or Black Money Act.
The court also quashed the IT department's sanction orders to prosecute Chidambaram's wife Nalini Chidambaram, his son Karti Chidambaram and daughter-in-law Srinidhi under the Black Money Act.
The IT department had filed criminal complaints charging Nalini Chidambaram, Karti Chidambaram, Srinidhi Karti Chidambaram and the company Chess Global Advisory Services for non-disclosure of immovable properties in the UK and in the US to the tax authorities.
The three persons approached the High Court for relief contending that the order issued sanctioning their prosecution was not issued by a competent authority.
They also contended that the Chief Metropolitan Magistrate court here was not the designated special court under the Act.