Jaya, Sasikala summoned on charges of tax evasion

Former Tamil Nadu chief minister Jayalalitha Jayaram and her close aide Sasikala Natarajan have been summoned before the court of Additional Chief Metropolitan Magistrate V Periakaruppiah on September 22 for tax evasion.

The magistrate passed the order after the Madras assistant commissioner of income tax, central circle, filed a complaint in this connection.

The complaint said that Sasi Enterprises, in which both Jayalalitha and Natarajan are partners, had not filed returns by the August 31, 1991 deadline. It had also failed to file the returns by March 31, 1993 as prescribed under section 139 (4) of the Income Tax Act. Further, the firm failed to respond to the notice issued on February 15, 1994 under Section 148 of the Act.

However, the department completed its assessment. Income for 1991-92 was determined as Rs 584,000 and the tax was calculated at Rs 302,000. A demand notice for Rs 995,000 was issued towards income tax and interest.

The department said that for 1992-93, the income was calculated as Rs 1.487 million and the tax payable was determined at Rs 808,000. A demand notice for Rs 2.272 million was issued towards income tax and interest.

It said the two women were not co-operative during the assessment proceedings and merely pleaded for time. Hence, their conduct in not filing the returns for 1991-92 and 1992-93 was wilful and deliberate. They had committed an offence punishable under Section 276 of the Act, it added.

The duo had also not given convincing reasons for not filing returns, the department submitted.

UNI