The Madras High Court dismissed actor Vijay’s plea challenging a ₹1.5 crore income tax penalty linked to alleged undisclosed earnings from the 2015 film Puli. The court upheld the Income Tax Department’s action, rejecting arguments that the order was time-barred.
Madras High Court Dismisses Actor Vijay’s Plea Against ₹1.5 Crore Tax Penalty
Chennai: The Madras High Court dismissed actor and Tamilaga Vetri Kazhagam (TVK) founder Joseph Vijay's petition challenging the ₹1.5 crore fine imposed by the Income Tax Department for alleged income concealment. Justice Senthilkummar Ramamoorthy delivered the order on Friday.
The case relates to an Income Tax search conducted at Vijay's premises in 2015. The department claimed that approximately ₹16 crore of undisclosed income was detected during the search. According to officials, this amount related to the actor's remuneration for the 2015 Tamil film Puli, which included approximately ₹5 crore in cash payments reported as undisclosed payments and was not voluntarily declared in his income tax returns.
Following the search and investigation, the Income Tax Department initiated penal proceedings under the Income Tax Act. As a result, an order was passed on June 30, 2022, imposing a fine of ₹1.5 crore on Vijay. The actor challenged this order in the High Court.
Vijay's side did not argue in the High Court that the department lacked the authority to impose the fine. His main argument was that the penalty order was not passed within the time limit. The lawyer argued that the statutory deadline for imposing the fine was June 30, 2019, but the order was issued three years later, making it legally unsustainable.
The Income Tax Department opposed the petition, stating that there was no procedural or legal error in the proceedings. According to the department, the time limit was correctly calculated based on the assessment related to the search and subsequent proceedings, and the penalty was imposed in accordance with the law.
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After hearing arguments from both sides, the Madras High Court dismissed actor Vijay's petition. The court accepted the Income Tax Department's position and upheld the validity of the punitive action and fine.
This decision is considered significant because Vijay has recently entered active politics and his party, the Tamilaga Vettri Kazhagam, is establishing a new presence in state politics. Consequently, this court decision is considered a major setback for him on the legal front.
