Fri Feb 06 05:59:30 UTC 2026: # Madras High Court Upholds ₹1.5 Crore Penalty Against Actor Vijay

The Story:
The Madras High Court dismissed a writ petition filed by actor-turned-politician C. Joseph Vijay of Tamilaga Vettri Kazhagam (TVK), upholding a penalty of ₹1.5 crore imposed by the Income Tax Department. The penalty was levied due to Vijay’s failure to voluntarily disclose an additional income of ₹15 crore during the financial year 2015-16. Justice Senthilkumar Ramamoorthy ruled that the income disclosure and subsequent tax payments were only made after a search and seizure operation by I-T officials on September 30, 2015.

The court rejected Vijay’s counsel’s argument that the penalty proceedings were time-barred, stating that the Income Tax Department had initiated the proceedings within the permissible timeframe. However, the court left open the possibility for Vijay to appeal the penalty order before a higher authority on grounds other than the limitation period.

Key Points:

  • The Madras High Court dismissed C. Joseph Vijay’s writ petition against the Income Tax Department.
  • The penalty of ₹1.5 crore was imposed for non-disclosure of ₹15 crore in additional income for the financial year 2015-16.
  • The Income Tax Department conducted a search and seizure operation on September 30, 2015, which led to the disclosure.
  • The court rejected the argument that the penalty proceedings were time-barred.
  • Vijay can still appeal the penalty order on other grounds.

Key Takeaways:

  • Tax evasion, even when partially disclosed after investigation, can lead to significant penalties.
  • The Income Tax Department actively pursues cases of potential income concealment, especially involving high-profile individuals.
  • Legal challenges to tax penalties may focus on procedural aspects like limitation periods, but the burden of proof rests heavily on the taxpayer.
  • Public figures are subject to higher scrutiny regarding their financial dealings.
  • The ruling highlights the importance of voluntary disclosure of income to avoid penalties.

    Read More

Related News: