Chennai: In a relief to AIADMK supreme Jayalalithaa, a court here on Thursday discharged her from an 18-year old income tax return case, allowing withdrawal of prosecution by the I-T department consequent to acceptance of her compounding pleas by it.

A total of four cases against Jayalalithaa, her aide Sasikala and a firm in which they are partners were "dismissed as withdrawn from prosecution" by Additional Chief Metropolitan Magistrate R Dakshinamurthy.

"Orders passed by the Director General of Income Tax (Investigation) (on compouding) is perused. The case against the accused is dismissed as withdrawn from prosectuion under 321 Cr Pc. The accused are discharged," he said citing a plea seeking nod for withdrawal of prosecution.

Section 321 of CrPc allows withdrawal from prosecution by the Public Prosecutor with the consent of the court at any time before the judgment is pronounced.

The cases were filed against Jayalalithaa and others in 1996 and 1997 for not filing income tax returns in their individual capacities and as partners of Sasi Enterprises.

Earlier in the day, Senior Special Public Prosecutor for I-T department K Ramasamy sought the court's consent "to withdraw prosecution and not to pursue prosecution proceedings further" as the alleged offences were compounded under the Income Tax Act.

Defence counsel J Karuppiah informed the court that final orders had been passed by the tax authorities and compounding fee paid by the accused.