Madras HC extends interim stay on proceedings against Karti in "tax evasion" case

The Madras HC has extended till February 12 the interim stay on the proceedings against Congress MP Karti Chidambaram and his wife in connection with a case of alleged income tax evasion.

Chennai (Tamil Nadu): The Madras High Court on Monday extended till February 12 the interim stay granted by it on the proceedings against Congress MP Karti Chidambaram and his wife in connection with a case of alleged income tax evasion, pending before a special court.

Justice M Sundar passed the order on a petition by Karti, son of former union minister P Chidambaram, and his wife Srinidhi seeking to stall proceedings against them in the special court constituted to hear cases related to MPs and MLAs after hearing arguments by senior counsel K T S Tulsi.

Tulsi, who appeared for the petitioners, argued that reassessment (of income) was time-barred under Section 153 (A) of the Income Tax Act.

The court had on Tuesday last granted interim stay till Monday (January 27) on the matter related to alleged non-disclosure of Rs 6.38 crore income by Karti and Rs 1.35 crore by his wife in 2015.

The special court, which had earlier dismissed their discharge pleas was to have framed charges against the petitioners on January 21.

With the extension of the interim stay, the special court cannot proceed with the framing of charges till February 12.

According to the Income Tax department, Karti, elected to Lok Sabha from Sivaganga constituency in the 2019 elections, and his wife had received the amount in cash was for the sale of land at Muttukadu near here years ago but allegedly did not disclose it in their I-T returns.

The petitioners have also challenged the case being heard by the special court for MPs and MLAs on the ground that the transaction was completed and returns of income were filed in 2015 when Karti was not a member of Parliament.

The deputy director of income tax Investigation, Chennai, had filed a complaint on September 12, 2018, against the petitioners before the Additional Chief Metropolitan Magistrate Court-II (Economic Offences) for offences under sections 276c(1) and 277 of the I-T Act.

The case was later transferred to the special court.