Ranchi, March 5: Jharkhand High Court today granted bail to Madhu Koda in a case registered by the income tax department for alleged evasion of tax returns, leaving the tainted former chief minister to battle out one more case before he can walk out of jail.

Despite the bail, Koda will not be released, as he is wanted in a case that is being investigated by the CBI for allegedly swindling public money in a rural electrification scam.

Four days ago, the Supreme Court granted bail to Koda in a money laundering case. Prior to that, he was given bails in a disproportionate assets case and another registered by the vigilance bureau for his alleged involvement in granting MoUs and appointment of the state pollution control board chairman.

The high court today was hearing Koda’s bail petition in the case that had been registered by the income tax department deputy commissioner, central circle, Jamshedpur, in 2010. The case followed raids by income tax sleuths at Koda’s properties.

The department had recovered several documents, based on which it argued that Koda has not filed the returns of tax in terms of assessment of his income and wealth from 2004-05 to 2009-10.

The department had also issued a showcause notice to Koda to immediately pay the taxes he allegedly evaded within 30 days, after which the complaint was lodged against him under Section 276 CC of the Income Tax Act.

The Act states that penal provisions can be applied for violation of the section, which deals with failure to furnish returns of income.

The section carries a punishment of a minimum imprisonment of six months, which may go up to seven years.

Arguing on behalf of Koda, his counsel Biswajit Mukherjee said his client had filed all returns and that the department had nailed a false case.

In any view of the matter, the documents seized by the department had not been provided to Koda for him to know what is the discrepancy in the calculations as projected by the officials, Mukherjee said.

After hearing the arguments, the high court observed the matter involved a technical offence and Koda who was already in custody was remanded in the case in December 2012. It granted bail to Koda on two sureties of Rs 20,000 each.