Madras HC relief for Chidambaram, family; quashes IT order against them
: In a relief to P Chidambaram, the Madras high court quashed an order of the Income Tax department seeking payment of tax by the former finance minister and his family on income from a coffee estate owned by them for 2008-09 financial year after re-assessing it.
Justice TS Sivagnanam Monday quashed March 31, 2016 demand notice and the consequential December 30 reassessment order issued by the assistant commissioner of Income Tax, Chennai, seeking payment of about Rs 6 lakh from Chidambaram and others.
He was allowing petitions by Chidambaram and his family members challenging the notice and the re-assessment order.
The matter relates to the petitioners claiming exemption of entire income from sale of coffee and pepper from their estate in Coorg in Karnataka in 2008-09 as agricultural income under section 10(1) of the Income Tax Act, which was allowed then.
The department had issued the notice saying there was reason to believe income chargeable to tax had escaped assessment.