CHENNAI: In the income tax case involving the late Chief Minister J Jayalalithaa, the Madras High Court has directed the Income Tax Department to keep the recovery proceedings in abeyance because the IT department officials failed to notify the legal heirs of the details of the exact and final tax liability.

In the income tax proceedings relating to the late Chief Minister J Jayalalithaa, the Income Tax Department issued a notice to J Deepa, who has been declared a legal heir, directing her to pay Rs 13 crore towards alleged tax arrears.

Challenging this, Deepa filed a writ petition before the Madras High Court. Another legal heir, Deepak, was also impleaded as a party to the proceedings.

When the matter came up for hearing before Justice C Saravanan, counsel appearing for Deepa submitted that the Income Tax department had initially issued notices claiming tax arrears of Rs 36 crore and subsequently issued a revised demand notice seeking payment of Rs 13 crore. It was submitted that the petitioner was willing to pay the amount, provided the department communicated the precise total amount of tax. Recording the submissions, the Judge directed the Income Tax Department to file a detailed counter-affidavit.

When the case came up for hearing again on Wednesday, counsel for Deepa submitted that the Income Tax Department has yet to file its counter affidavit, despite the Court's earlier order.

Taking note, the Justice directed the Income Tax Department to file a detailed counter-affidavit for tax arrears and to keep the recovery proceedings in abeyance.