18-yr case against Jaya, Sasikala set to be closed

AIADMK chief Jayalalithaa, her aide Sasikala and a firm in which they are partners have together paid Rs 1.99 crore as compounding fee, setting in motion the process for the closure of an 18-year-old Income Tax case against them. While Jayalalithaa paid Rs 30,83,887 lakh, Sasikala paid Rs 28,07,972 to compound alleged offences under Income Tax Act for non-compliance in filing annual tax returns, both for the 1993-94 assessment year, a court here was apprised today.

Jayalalithaa

Chennai, December 1
AIADMK chief Jayalalithaa, her aide Sasikala and a firm in which they are partners have together paid Rs 1.99 crore as compounding fee, setting in motion the process for the closure of an 18-year-old Income Tax case against them.

While Jayalalithaa paid Rs 30,83,887 lakh, Sasikala paid Rs 28,07,972 to compound alleged offences under Income Tax Act for non-compliance in filing annual tax returns, both for the 1993-94 assessment year, a court here was apprised today.

Sasi Enterprises paid Rs 75,33,330 and Rs 65,67,872 as compounding fee for 1991-92 and 1992-93 assessment years. Taken together, a fee of Rs 1,99,90,000 has been remitted in favour of tax authorities to compound alleged offences.

Out of the compounding fee, prosecution establishment charges and litigation expenses, the three heads under which tax authorities had directed payments to be made, the charges towards litigation stood

the highest.

Jayalalithaa, for instance, paid compounding fee of Rs 7,52,637, prosecution establishment charges of Rs 50,000 and litigation expenes of Rs 22,81,250.

A request to compound offences was made on June 25 this year to tax authorities by Jayalalithaa, Sasikala and Sasi Enterprises.

The Income Tax department’s Regional Compounding Committee in its November 26 meeting, decided to accept the request, subject to remittance of the stipulated fee. On November 27, the payments were made.

Special Public Prosecutor Ramasamy K told PTI that the case against Jayalalithaa, Sasikala and Sasi Enterprises will now come to an end.

“The Regional Compounding Committee will pass a final order as required under the law,” he said, adding the “prosecution will be withdrawn,” formally after that order and the court will be “petitioned appropriately.”

When the income tax cases against Jayalalithaa and Sasikala came up today before Additional Judge, A Kayalvizhi, petitions were filed by the defence seeking two weeks adjournment.

Following a plea to tax authorities to compound offences, the petitioners were directed to pay compounding fee and it was done, the court was informed. Now the authorities have to pass a final order as stipulated in the Income Tax Act 1961.

“Therefore, until the final order is passed in the said compounding application, further proceedings before this honourable court may not be proceeded.” — PTI