P Chidambaram, eminent senior advocate and former Finance Minister, has alleged that the raids conducted by the Income-tax department on Advantage Strategic Consulting Pvt Ltd and Vasan Eye Care, companies said to be connected to his son, Karti Chidamabaram, is a “malicious onslaught” by the Government on him. In reply to the allegations, the CBDT has issued a press release dated 01.12.2015 stating that the search action was based on “credible information of tax evasion and large scale financial irregularities” committed by the group. It is also claimed that “certain incriminating evidence indicative of tax evasion and financial irregularities have been recovered during the on-going investigation”. The CBDT has also clarified that there is no collateral purpose behind the search action and that no political person or his family member have been targeted.
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 1st December, 2015
Subject: Search and Survey operations under the Income-tax Act on certain groups at Chennai and Tiruchirapalli-reg
Based upon credible information of tax evasion and large scale financial irregularities committed by a group based at Chennai and Tiruchirappalli, the Investigation Wing of the Income Tax Department at Chennai has been conducting investigation. As part of such investigation, searches under section 132 and surveys under section 133A of the Income-tax Act, 1961 are being conducted at the residential and business premises of the key functionaries of the group, today i.e., 1st December 2015.
Survey is also being conducted at the business premises of another private limited company in Chennai which has shareholding in a company of the aforesaid group.
Certain incriminating evidence indicative of tax evasion and financial irregularities have been recovered during the on-going investigation. Further action as per law will follow.
The searches and surveys have been conducted strictly as per the provisions of the Income-tax Act. These are consequential to the on-going investigations. There is no collateral purpose behind such actions and no political person or his family member are today shareholders or directors of the companies searched or surveyed by the Income Tax Department.
Disclosure of information respecting assessees is prohibited except as provided in section 138 of the Income-tax Act, 1961.
Pr. Commissioner of Income Tax (OSD)
Official Spokesperson, CBDT