Actor Vijay Appeals Single-Bench Ruling Of Madras High Court Upholding ₹1.5 Crore Income Tax Penalty

Actor-turned-politician Joseph Vijay has moved a Division Bench of the Madras High Court against a single-judge ruling that upheld a ₹1.5 crore income tax penalty imposed on him.

The appeal, filed last month, is yet to be listed for hearing.

The challenge is to a judgment by Justice Senthilkumar Ramamoorthy, who had dismissed Vijay's writ petition and upheld the penalty linked to alleged undisclosed income of Rs 15 crore for the financial year 2015–16.

The single judge held that the penalty order dated June 30, 2022 was within the limitation period under Section 275(1)(a) of the Income Tax Act, 1961. The court said that when an assessment is under appeal, the limitation period for penalty runs from the appellate order. It rejected Vijay's argument that the penalty was time-barred.

The court also noted that revision proceedings under Section 263 had been set aside by the Income Tax Appellate Tribunal, making Section 275(1)(b) inapplicable. It recorded that the tribunal passed its order on December 22, 2021. The six-month limitation period ended on June 30, 2022. The penalty order was issued on that date.

The case stems from income tax search proceedings conducted at Vijay's residence on September 30, 2015. During the search, he admitted to receiving substantial cash income. He later disclosed Rs 15 crore in his returns for the financial year 2015–16.

An assessment order was passed on December 30, 2017, recording initiation of penalty proceedings. The assessment was challenged in an appeal before the Commissioner of Income Tax (Appeals) and later the tribunal.

While dismissing his writ petition, the High Court had allowed Vijay to challenge the penalty on other grounds before the appropriate forum. He has now filed this intra-court appeal before a Division Bench.