Madras High Court Reserves Order in Vijay's Income Tax Penalty Challenge
The Madras High Court in Chennai has reserved its judgment on a significant petition filed by popular Tamil actor and Tamilaga Vettri Kazhagam (TVK) founder Vijay. The plea contests a substantial penalty of ₹1.5 crore imposed by the Income Tax Department, alleging the actor failed to disclose his true income for the assessment year 2015-16.
Details of the Case and Conflicting Claims
Justice Senthilkumar Ramamoorthy concluded the final hearing on Friday and reserved the order, marking a crucial phase in this legal battle. According to Vijay's submissions, he declared an income of ₹35.42 crore for the financial year 2016-17. However, the Income Tax Department's stance is based on documents seized during a raid at his residence in 2015.
The department alleges that Vijay did not disclose an additional ₹15 crore earned from the movie 'Puli'. Based on these findings, the penalty was imposed through an order dated June 30, 2022.
Legal Arguments and Interim Relief
Challenging this order, Vijay filed the present petition. The court admitted the plea, and on August 16, 2022, a single judge granted an interim stay against the operation of the department's order, providing temporary relief to the actor.
In his arguments, Vijay contended that the penalty should have been issued before June 30, 2019. He asserted that since the order was passed belatedly, beyond this timeframe, it should be set aside as invalid.
Department's Defense and Awaiting Judgment
Opposing these submissions, the Income Tax Department maintained that the penalty imposed on Vijay was fully valid under the provisions of the Income Tax Act. The department argued that the petition lacks merit and should be dismissed, emphasizing compliance with legal procedures.
With the court reserving its order, all parties now await the final judgment, which will determine the validity of the ₹1.5 crore penalty and address the procedural timing concerns raised by Vijay's legal team.
