Chennai: In a significant legal setback for actor-politician Vijay, the Chennai High Court on Wednesday upheld the Income Tax Department’s penalty of Rs 1.5 crore imposed on him for concealing income. The court dismissed Vijay’s petition, ruling that the penalty for not declaring Rs 15 crore received as remuneration for the 2015 film ‘Puli’ was valid and enforceable.
Case Background: Raids Revealed Undisclosed Income from 2015 Film
The case stems from Income Tax raids conducted at Vijay’s residence and office in 2015, during which several financial documents were seized. While Vijay declared an income of Rs 35.42 crore for the 2015-16 financial year, the department’s examination of the seized records revealed he had not accounted for the Rs 15 crore fee from ‘Puli’. Subsequently, in 2022, the department issued the penalty notice, demanding 10% of the concealed amount.
Vijay’s Challenge and the Court’s Ruling
Vijay challenged the penalty in court, not disputing the assessment of concealed income but contesting the legality of the timing. His legal team argued that the penalty order should have been passed by June 30, 2019, as per relevant procedures, and that the 2022 notice was a delayed action. The Income Tax Department countered that the order was legally sound and issued within the permissible timeframe.
A bench comprising Justices Senthilkumar and Ramamoorthy, after hearing both sides, rejected Vijay’s contention. The court ruled that the penalty was imposed correctly and within the stipulated period, thereby dismissing his petition and upholding the department’s demand for the Rs 1.5 crore penalty.
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