Madras High Court Upholds Rs. 1.5 Crore Income Tax Penalty Against Actor Thalapathy Vijay:

Madras High Court Upholds Rs. 1.5 Crore Income Tax Penalty Against Actor Thalapathy Vijay The Madras High Court, in a recent hearing, has confirmed a penalty amounting to Rs. 1.5 Crore imposed on South Indian actor Vijay Thelapathy by the Income Tax Department. Accordingly, the High Court has dismissed the writ petition of Vijay, holding that the penalty is a legal fine. The bench said that no one interfered at any stage, so there was no need for the court to step in. Because of this, the court fully agreed with the arguments of the Income Tax Department.

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The dispute began in 2015, when a search was conducted at the residence and workplace of Vijay by the tax authorities. During the search, officials found some documents. During the Financial Year 2015-16, Vijay had filed his income tax return (ITR), disclosing total income at Rs. 35.42 crore; however, that amount did not include earnings of about Rs. 15 crore that originated from the missing film 'Puli'. The tax authorities considered this as undisclosed income and accordingly imposed a penalty amounting to Rs. 1.5 Crore vide an order issued in June.

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Vijay, being aggrieved with the penalty order, challenged the same before the Madras High Court. In the past, the court has given an interim stay on the penalty. The lawyer representing the case argued that the tax authorities had delayed in passing the impugned order, and hence it should be set aside. However, the tax department argued that there was no delay in passing the order; it was timely passed within the statutory time limit. When the High Court heard the arguments raised from both sides and examined the facts of the case, it endorsed the tax authorities, dismissed the writ petition of Vijay, and upheld the penalty amounting to Rs. 1.5 Crores. However, Vijay is allowed to furnish an application before the ITAT.