Madras HC postpones hearing on actor Vijay’s writ petition challenging IT penalty of Rs 1.5 crore! Here's what happened

(This article is authored by Alar)

In a recent development in the legal saga involving Tamil actor Vijay and the Income Tax (IT) Department, the Madras High Court adjourned the actor's plea against a penalty of Rs 1.5 crore imposed on him. The penalty was issued due to the alleged non-disclosure of an additional income amounting to Rs 15 crore during the financial year 2015-16.

This verdict comes after a writ petition was filed by the actor on June 30, 2022. The case was adjourned until October 30, 2023, by Justice Krishnan Ramaswamy, following a request for adjournment made by the petitioner's counsel.

Notably, during the admission hearing on August 16, 2022, Justice Anita Sumanth granted an interim injunction, restraining IT officials from recovering the penalty. Subsequently, A.P. Srinivas, senior standing counsel for the IT Department, submitted a detailed counter affidavit, explaining the grounds for imposing the penalty.

The controversy emerged from documents seized during the raids, revealing that the producers of Vijay's 2015 movie 'Puli' had paid him an amount of Rs 4.93 crore in cash, in addition to the Rs 16 crore remuneration paid via cheque. Tax Deducted at Source (TDS) was only applied to the cheque amount, omitting the cash transaction. When confronted, Vijay admitted receiving around Rs 5 crore in cash and expressed his willingness to pay taxes on this amount.

However, in his IT returns, the actor sought an exemption for specific expenses, including Rs 64.71 lakh spent on his fan club. This led to the imposition of the penalty, against which Vijay filed the writ petition. This legal battle has garnered significant attention, raising questions about financial transparency in the entertainment industry.

The court's decision to adjourn the case further extends the suspense surrounding the outcome. As legal experts dissect the intricacies of the case, the future holds crucial implications for both Vijay and the IT Department.

On the work front,  Vijay's ‘Leo’ is slated to release on 19th October. The movie has been produced by Lalit Kumar of Seven Screen Studios. The movie has been shot in various locations across India, with cinematography by Manoj Paramahamsa and editing by Philomin Raj. The movie features an ensemble cast of Sanjay Dutt, Arjun, Priya Anand, Gautham Vasudev Menon, Mysskin, Mansoor Ali Khan, Matthew Thomas, and Sandy.