CBDT: No truth in allegations

There is no truth in the allegation that Finance Minister P Chidambaram's family had anything to do with case fought by his wife Nalini, relating to a batch of 43 textile mills.

The Central Board of Direct Taxes (CBDT) said in a press release that by a judgment, dated 29 April, 2005, the Madras High Court disposed of a batch of cases. The first case of this batch was the Commissioner of Income Tax vs Janakiraman Mills Ltd case.

The CBDT said this was the first case in which a special counsel was engaged. In all other cases, the standing counsel represented the income tax department. "The judgment also discusses only the first case, because the judgment in the first case will apply to all other cases," the release said.

N Jothi, AIADMK member of Parliament, is reported to have said in a letter to Rajya Sabha Chairman Bhairon Singh Shekhawat the finance minister's brother benefited from the judgment as he owned a textile mill that was part of the group of mills that went to court against the CBDT.

Finance ministry sources said the name of Karpagambal Mills Ltd, Cholapuram, was not part of the list of 43 mills that fought the case. If the mill had benefited as a result of the judgment, it was a different matter, it added. But it did not petition the commissioner of income-tax.

None of papers relating to the case indicate that N Jothi's allegation holds any water.