Jaylalithaa must face trial - SC

In a major setback to Tamil Nadu Chief Minister Jayalalithaa (Prime Ministerial Candidate of 2014 Election), the Supreme Court cleared the decks for her prosecution, initiated by the Income Tax Department in the Additional Chief Metropolitan Court, Economic Offences-1, Egmore, Chennai, for non-filing of income tax returns during 1991-92 and 1992-93 by Sasi Enterprises and by herself as its partner for 1993-94.

A Bench of Justices K.S. Radhakrishnan and A.K. Sikri rejected her contention that non-filing of returns per se was not an offence as there was no income and no tax evasion, and directed the lower court to complete the trial in four months. If convicted, she will attract a minimum of three-month imprisonment or a maximum of three years and a fine, and the possibility of disqualification from the Assembly.

The Bench dismissed a batch of appeals filed by Ms. Jayalalithaa, her close aide N. Sasikalaa and Sasi Enterprises, of which both were partners, against a Madras High Court judgment that threw out their discharge petitions. The Income Tax Department instituted criminal proceedings in 1996 and 1997 against Ms. Jayalalithaa. Cases were also filed against Ms. Sasikalaa and Sasi Enterprises. The trial court dismissed their applications for discharge, and the High Court rejected appeals.

AIADMK and other parties play it down

Tamil Nadu Chief Minister Jayalalithaa is not expected to respond immediately to the ruling of the Supreme Court on her failure to file income tax returns. But senior AIADMK leaders made it amply clear that the order “will have no political bearing on the fortunes of our party or our leader.” “Amma has faced more serious political and legal battles, and this is nothing compared to them” is their refrain.

The crux of the argument of some advocates is that the case was pending trial and Ms. Jayalalithaa has not been held guilty by the court. The advocates are in mind that, mere failure to file I-T returns is more a technical offence than criminal, unless it is proved that there was a wilful attempt to avoid liability.

None of the major political parties has made this an issue. Even DMK president M. Karunanidhi refused to comment, saying it was a matter between the court and Ms. Jayalalithaa. The BJP and Left parties too do not want to comment on record or make much of the case. A BJP leader accused the UPA, and the Congress in particular, of trying to curb her ascendancy by clamping new cases.

V.S. Jayakumar, a senior advocate who handles I-T cases, pointed out that since the Income Tax Act came into existence in 1961, only three persons have been prosecuted in Tamil Nadu. Though the penal provisions Act prescribed imprisonment, such punishments are very rare. Senior advocate I. Subramanian is of the view that the case is more technical than criminal. The issue will become serious only when the failure to file I-T returns is to avoid liability and defraud the government.