Madras High Court Upholds ₹1.5 Crore Income Tax Penalty Against TVK Chief Vijay
In a significant legal development, the Madras High Court on Friday dismissed a writ petition filed by TVK (Tamilaga Vettri Kazhagam) chief and prominent actor Vijay. The petition challenged an order from the Income Tax Department that directed him to pay a substantial penalty of ₹1.50 crore. This penalty was imposed for allegedly failing to fully disclose his income for the assessment year 2015-16.
Court's Rationale for Dismissal
Justice Senthilkumar Ramamoorthy, presiding over the case, delivered the judgment after reserving it on January 23 following extensive arguments from both parties. The judge firmly rejected Vijay's petition, stating that the penalty order was issued well within the legally prescribed time limit. Consequently, the court found no grounds for judicial interference, leading to the dismissal of the plea.
Justice Ramamoorthy emphasized that the petitioner retains the right to appeal this decision before the appropriate appellate authority. This clarification came after Vijay's legal counsel requested permission to challenge the order further, as reported by PTI.
Background of the Income Tax Dispute
The controversy stems from Vijay's income declaration for the financial year 2016-17, where he reported an income of ₹35.42 crore. However, the Income Tax Department contested this figure based on documents seized during a raid at his residence in 2015.
The department alleged that Vijay failed to disclose an additional ₹15 crore earned from the Tamil film 'Pui'. This undisclosed amount formed the basis for the penalty imposed by the IT authorities.
Timeline of the Penalty and Legal Proceedings
- The Income Tax Department issued the penalty order on June 30, 2022, demanding ₹1.50 crore from Vijay.
- In response, Vijay filed a writ petition challenging this order in the Madras High Court.
- On August 16, 2022, a single judge initially stayed the operation of the penalty order, providing temporary relief to the petitioner.
- The final hearing took place recently, culminating in Friday's dismissal of the petition by Justice Ramamoorthy.
This ruling underscores the judiciary's stance on compliance with tax regulations and the importance of full income disclosure by high-profile individuals. The case has drawn considerable attention due to Vijay's dual role as a political leader and a celebrated film star, highlighting the intersection of celebrity, politics, and financial accountability.
