Income Tax case: Order on Jayalalithaa’s appeal today

Chennai: The Madras high court will pass orders on Wednesday on a petition filed by Chief Minister J. Jayalalithaa, challenging an order of the additional  chief metropolitan magistrate (Economic Offences-I), Egmore, which directed her to appear before the court on October 1 and answer the questions in connection with income tax returns cases. Justice K.B.K. Vasuki reserved orders for September 24, on the petitions filed by Jayalalithaa, her close aide Sasikala and Sasi Enterprises, in which both were partners. Senior counsel B. Kumar and A. Navaneethakrishnan, appearing for the petitioners submitted that the petitioner has filed an application for compounding the alleged offence under section 276 CC of I-T Act before the income tax department.

The processing of the said application was acknowledged by the director general of income tax. The compounding application was pending consideration before the I-T department. On September 18, a petition was filed before the trial court to adjourn the proceedings by two weeks on the ground that the compounding application was pending consideration. However, the magistrate passed an order directing the petitioners to appear before the court on October 1for questioning and framing of charges, they added.

They said if the compounding application was allowed, the prosecution will automatically stands withdrawn. Therefore, when such a compounding application was being considered, making the assessee to appear was unnecessary. As per the guidelines issued by the central government, 180 days has been fixed as outer time limit for deciding the compounding application. The 180 days expires on December 24.

Therefore, criminal proceedings will have to be kept in abeyance at least till the 180 days prescribed in the manual of the department. This was a new cause of action. The compounding application was filed on May 26. The Supreme Court had no occasion to consider it, they added.

Special public prosecutor for income tax K. Ramasamy submitted that the Supreme Court in its order dated January 30 directed the trial court to complete the trial within four months. During election period, the apex court granted three more months time. The SC mandate has to be obeyed. Ignoring the pendency of the compounding application, trial has to be commenced parallely. Both proceedings can go on. The petitioners have to approach the SC for any further order. Court cannot wait till the compounding application was decided, he added.