HC clears decks for I-T charges against Jaya

Charges against Jaya, Sasikala for failing to file tax returns

The Madras High Court today dismissed a writ petition by former chief minister J Jayalalithaa and her friend Sasikala Natarajan, challenging the constitutionality of a section of the Income Tax Act and seeking discharge from cases against them for failing to file I-T returns.

The High Court order clears the decks for framing of charges against them under Section 276(CC) of the Income Tax Act for “willful failure” to file their returns during Jayalalithaa’s first term as chief minister.

High Court Judge Prabha Sridevan ruled that it was for the assessee to prove that she had not willfully defaulted in filing the returns. The cases against Jayalalithaa, Sasikala and their partnership firm, Sasi Enterprises, relate to the non-filing of income-tax returns from 1991 to 1994. In June, the Additional Chief Metropolitan Magistrate (Economic Offences) here dismissed their discharge petitions based on a Supreme Court direction, preparing to proceed with the framing of charges. Jayalalithaa challenged both the magistrate’s order and the validity of Sec 278E.

As it was “near impossible” for the prosecution to get direct evidence as to the mental state of the accused (as to whether she acted willfully or otherwise), it had to go by “reasonable doubt”. The judge said the trial court had found a prima facie case based on documents and exhibits given by the prosecution and deposition of witnesses and dismissed the petitions.