SC admits SLP filed against Madras HC’s decision quashing prosecution launched against Karti Chidambaram

Case Details: Deputy Director of Income-tax (Investigation) v. Karti P. Chidambaram - [2022] 142 taxmann.com 223 (SC)

Judiciary and Counsel Details

• • Sanjiv Khanna & J.K. Maheshwari, JJ.
  • Balbir Singh, ASG Navanjay Mahapatra, Manish Pushkarna, Naman Tandon, Raghav Sharma, Advs. & Raj Bahadur Yadav, AOR for the Petitioner.
  • Kapil Sibbal, Sr. Adv. Kunal Vajani, Shubhang Tandon, Advs. & Kunal Mimani, AOR for the Respondent.

Facts of the Case

The Supreme Court of India has admitted Special Leave Petition (SLP) filed by IT Department against the ruling delivered by the Madras High Court wherein relief was granted to Karti P. Chidambaram-assessee.

In the given case, Deputy Director had lodged prosecution against the assessee under section 125 of Code of Criminal Procedure for an offense of wilful attempt to evade tax under sections 276C, 277, and 278.

High Court Held

The Madras High Court had held that neither any incriminating materials were unearthed by the prosecution from assessee nor any incriminating statements admissible under section 132(4) were recorded from assessee so as to proceed against assessee. What was sought to be used against assessee was some statements said to be contained in hard discs seized during search on some other entity. Thus, prosecution initiated against assessee for offences under sections 276C, 277, and 278 was unjustified.