Madras HC Dismisses Actor Vijay’s complaint against ₹1.5 Crore Income Tax Penalty against Vijay Madras HC Dismissed Vijay’s Application Against ₹1.5 Crore Income Tax Penalty. Chennai, today Deepening the legal woes for actor and Tamilaga Vettri Kazhagam (TVK) chief C. Joseph Vijay, Mr Joseph Vijay had asked Madras High Court dismissed the complaint that was filed by him against a ₹1.5 crore penalty imposed by the Income Tax (I-T) Department.
It was the alleged non-disclosure of income of ₹15 crore for the financial year 2015-16 on a remit of the actor Vijay and Tamilaga Vijay that had not been disclosed in the case and therefore he was subject to a ₹1.5 crore penalty. India: Madras HC dismisses Vijay's claim for relief from the income tax fine as a penalty for a ₹1.5 crore was not lodged in court.
Puli - The ‘Puli’ Remuneration Row
The controversy involves search and seizure, a unit by I-T sleuths carried out in September 2015 at the actor’s residence. Documents about the film Puli were confiscated during the investigation. The department said that:
- The actor received ₹4.93 crore in cash from film producers in addition to being paid a reported cheque.
- Tax Deducted at Source (TDS) was only submitted for the cheque transactions, but not so much as the cash element.
Vijay admitted his extra income after the raid and filed revised returns. However, the department contended the disclosure was not 'voluntary' because of the time frame in which it was observed as such.
The Court’s Verdict
Justice Senthilkumar Ramamoorthy could not set aside the penalty but delivered the judgment on Friday. Vijay’s lawyers had predominantly argued on the grounds of limitation, arguing that the penalty proceedings began in excess of the statutory timeframe (they should have concluded by then, rather than in 2022). On the contrary, the Court noted that ‘I-T Department's position was that the penalty is proper under Section 271AAB(1) of the Income Tax Act which is applicable and has to do specifically with undisclosed income found while searching’.
Political Implications
The timing of the verdict is notable since Vijay has recently engaged in active politics with his political party Tamilaga Vettri Kazhagam (TVK). Opponents have turned to his past tax court cases - including the infamous 2021 Rolls Royce entry tax case - as a springboard for blaming him for the image of this state of affairs on which his reputation is based. That is a new layer of scrutiny when he prepares his own party for the elections to come.
