IT issues fresh black money notice, Karti challenges

The Income Tax department has issued fresh summons to Karti Chidambaram, son of former finance minister P Chidambaram, under criminal sections of the Black Money Act seeking details about a UK-based asset, a move challenged by him.

Officials said Karti was asked to depose before the investigating officer of the case today in Chennai under the provision of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act of 2015 that deals with undisclosed assets stashed abroad.

They said the department wants to seek details about the transactions undertaken by Karti for acquiring an immovable property located in Cambridge.

However, Karti refused to join the probe stating that he had already submitted the details of the asset and related transactions undertaken last year to another tax authority and that "parallel proceedings" cannot take place against an individual under the same law.

It is understood that he also moved the Madras High Court seeking its directions to the tax department to complete the assessment in this context initiated by it in August last year.

The order of the court was not immediately known.

Karti, it is understood, has also asked the tax department to "withdraw" the fresh notice on these ground, even as he submitted the details sought by the department about the foreign asset.

However, the sources said that he may be issued fresh summons for appearance soon.

They said the IT notice was issued to Karti and not to any of his family members.

The department had slapped the Black Money Act against Karti last year after it found that assets were created abroad by him, in alleged violation of the law.

The new anti-black money law deals with cases of overseas illegal assets, which till recently were probed under the Income Tax Act, 1961.

The new legislation has provisions for a steep 120 per cent tax and penalty on undisclosed foreign assets and income, besides carrying a jail term of up to 10 years.