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I-T dept drops case as Jaya, others agree to pay Rs 2 cr fine

The income-tax (I-T) department has withdrawn case against former Tamil Nadu Chief Minister and AIADMK Supermo J Jayalalithaa. The case was related to a wilful failure to file tax returns during 1991-92 and 1992-93.

After the department announced its decision, a court order is expected at 3 pm on the matter, said media reports. Today’s development comes after Jayalalithaa and others have agreed to pay Rs 2 crore as fine in a case related to wilful failure to file tax returns during 1991-92 and 1992-93.

The court here is expected to pass an order late in the afternoon today. It may be noted, in December Jayalalithaa and others decided to opt for an out-of-court settlement with the department. Jayalalithaa, reportedly requested compounding of the offences in the case, which was heard by a court in Chennai.

The letter dated November 26 issued from the office of the Deputy Commissioner of I-T, Chennai, said, “The Regional Compounding Committee, in its meeting held on November 26, 2014, has decided to accept your (Jayalalithaa’s) request for compounding of offences under section 279 (2) of the Income Tax Act, 1961, subject to remittance of the amount determined by the committee.”

The amount determined includes Rs 7.52 lakh compounding fee for the offence under the section, Rs 22.8 lakh for litigation expenses and Rs 50,000 for prosecution establishment charges, making the total Rs 30.84 lakh.

The I-T office also asked Jayalalithaa to remit the amount within 60 days from the date of receipt of the communication and produce the receipt of the chalan, to enable the competent authority to pass final order under the relevant section.

The department had earlier instituted criminal proceedings by filing complaints in 1996 against Jayalalithaa and friend Sasikala Natarajan, for not filing returns in their individual capacity for 1993-94.

Again in 1997, the department filed two complaints against Jayalalithaa and Sasikala for allegedly failing to file returns for the assessment years 1991-92, 1992-93.Since then, four complaints have been pending before the additional chief metropolitan magistrate court.

Earlier, the court had ordered the personal appearance of Jayalalithaa and Sasikala.

When the matter came up for hearing before it on April 3, petitions were filed by their counsel seeking to dispense with personal appearance of Jayalalithaa and Sasikala.They citied 313 amendment saying, which doesnt say necessarily the accused need to appear in the court and Sasikala’s lawyer sought exemption stating health reasons.

Meanwhile, the Karnataka Special court for third day is hearing Jayalalithaa’s disproportionate assets case at Bengalaru. Jayalalithaa, along with close aid Sasikala and three others were sentenced to four-year imprisonment. Jayalalithaa alone was fined Rs 100 crore in a the case, while for others Rs 10 crore each was fined.


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