Supreme Court of India(SC)Orders Prosecution of AIADMK Leader J Jayalalithaa For Not Filing I-T Returns Thursday Jan 30,2014

In a major setback, the Supreme Court on Thursday Jan 30,2014 ordered the prosecution of the Tamil Nadu Chief Minister Jayalalithaa initiated by the Income Tax department before the Additional Chief Metropolitan Court, Economic Offences-1, Egmore, Chennai, for not filing income tax returns during the years 1991-92, 1992-93 and 1993-94

A Bench of Justices K.S. Radhakrishnan and A.K. Sikri while rejecting her contention that non filing of income tax return was not an offence as there was no income and there was no tax evasion directed the trial court to complete the trial in four months.

Section 276CC of IT Act says
“Failure to furnish returns of income If a person willfully fails to furnish in due time the return of income which he is required to furnish under section 139 (1) or by notice given under Section 142 1 (i) or section 148, he/she shall be punishable,-
(i) in a case where the amount of tax, which would have been evaded if the failure had not been discovered, exceeds one hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine
 (ii) in any other case, with imprisonment for a term which shall not be less than three months but which may extend to three years and with fine: Provided that a person shall not be proceeded against under this section for failure to furnish in due time the return of income under subsection 139 (1).”

If convicted, J Jayalalithaa will attract a minimum punishment of three months imprisonment and maximum of three years and fine.

Note
J Jayalalithaa is facing a trial in an income tax related case for not filing IT returns between 1991 and 1994

J Jayalalithaa had argued that since she had no income in those three years, she did not file IT returns.

The IT department filed a case against her in a court.

J Jayalalithaa had questioned it before the Supreme Court.

The SC has instructed the lower court to go ahead with the prosecution of Jayalalithaa and has also set a deadline of four months to complete the trial.

J Jayalalithaa has to prove before the trial court that the reasons given by her for not filing the IT returns were genuine.

 If the court accepts her argument, she can escape from penal actions.

 If the court finds her guilty, she may have to pay penalty.

 J Jayalalithaa is now left with no other option, but to fight her case in a lower court.

J Jayalalithaa is also facing charges that she accumulated assets worth Rs 66.65 crore disproportionate to her known sources of income when she was the Tamil Nadu chief minister from 1991 to 1996