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This Article is From Feb 17, 2010

Court asks Serija Banu to pay Rs 97.18 lakh as tax

Madurai: Partly allowing a petition by the Income Tax department, the Madras High Court here on Wednesday directed Serija Banu alias Serina, arrested in 2003 for alleged possession of ganja and unaccounted cash of Rs 1.40 crore, to pay Rs 97.18 lakh towards IT.

Justice G M Akbar Ali said the department was entitled to receive only Rs 97.18 lakh, the amount being the tax applicable on the seized cash, for the assessment years 2004-05 and 2005-06, and not the entire money.

He also allowed Serina's revision petition and directed the Special Court for narcotics cases here to return her car, passport and 21 sovereigns of jewels and the balance amount available after deducting Rs 97.18 lakh towards IT from Rs 1.40 crore.

Police had seized Rs 1.40 crore cash, 20 kg of ganja, a luxury car and jewels from Serina's houses in Mudurai and in Chennai in July 2003. Serina was acquitted in the ganja case in June 2006 but the Income Tax Department had filed a plea demanding that she pay tax on the cash seized from her.

The case became sensational at that time as Serina claimed innocence and alleged she was tortured by police. She had also said she was a post-graduate and an income tax assessee.

Meanwhile, she filed a plea before the district court seeking an order to the authorities to return her cash, jewels, car and passport. The court allowed the return of cash but declined to release other items following which she filed the revision petition.

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