The Madras High Court on Friday upheld a ₹1.5 crore Income Tax penalty imposed on TVK chief and actor Vijay, dismissing his plea challenging the levy. The court ruled that the penalty was legally valid and endorsed the stand taken by the Income Tax Department.
What the Case Is About
In 2015, Income Tax authorities conducted a search at Vijay’s residence and workplace, during which several important documents were seized. According to News18, Vijay had declared an income of ₹35.42 crore in his Income Tax Return (ITR) for the financial year 2015–16. However, the income received from the film Puli, amounting to ₹15 crore, was not included in the declaration.
The Income Tax Department treated the amount as undisclosed and concealed income and subsequently levied a penalty of ₹1.5 crore through an official order issued in June last year.
Vijay challenged the penalty before the Madras High Court under the provisions of the Income Tax Act. His counsel argued that there was a delay in passing the penalty order and sought its quashing on that ground. The Income Tax Department countered the claim, stating that the order was passed within the prescribed statutory time limit.
After hearing both sides, the High Court dismissed Vijay’s petition and upheld the penalty of ₹1.5 crore.
Amid ‘Jana Nayagan’ Issue
The court’s ruling comes as another setback for Vijay, who is preparing to contest the 2026 Tamil Nadu Assembly elections. He has already been facing challenges related to the CBFC clearance of his upcoming film Jana Nayagan.
The film, initially scheduled for release on January 9, was postponed after failing to obtain a censor certificate. Subsequent legal proceedings in the Supreme Court and the Madras High Court did not go in Vijay’s favour, with the High Court directing the matter for fresh consideration.
According to recent reports, KVN Productions has agreed to make the cuts suggested by the Central Board of Film Certification. The film is now expected to release on February 20.
– Magizh
