In 2003, the Income Tax department had approached the High Court challenging Khanna's acquittal from a case registered against him for his alleged involvement in investment of a benami property, Ashirwad Mini Theatre, in suburban Juhu in March 1983.
According to prosecution, Khanna had not disclosed his income from the mini theatre and had carried out a benami transaction and invested Rs 3.51 lakh in two different years in the theatre, in the name of his wife Dimple Kapadia.
During the trial, Khanna himself deposed before the court and submitted that he was not concerned with the theatre and had not invested any money. Dimple Kapadia had also deposed and denied all charges against Khanna.
On December 27, 2000, additional chief metropolitan magistrate C L Thool acquitted Khanna from the case due to lack of evidence following which the Income Tax department filed an appeal in High Court.
The appeal today came up for hearing before Justice A M Thipsay, who abated it, considering the fact that the accused (Khanna) had already died.
Khanna (69) died on July 18 last year due to failing health.
