3 weeks ago
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A writ petition has been filed successful the Madras High Court seeking registration of a First Information Report (FIR) against Tamilaga Vettri Kazhagam (TVK) president C. Joseph Vijay connected the ground of income taxation proceedings initiated aft the merchandise of his Tamil movie Puli successful 2015 for alleged suppression of income, receipt of unaccounted currency remuneration and concealment of fiscal transactions.
The High Court Registry numbered the writ petition connected Wednesday (May 6, 2026) and it is expected to beryllium listed nether the caption ‘For Maintainability’ shortly. Though the lawsuit was filed past month, the Registry had refused to fig the case. However, the archetypal Division Bench of Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan, connected April 8, directed the Registry to fig it taxable to maintainability.
The Income Tax section had conducted a hunt and seizure cognition connected the premises belonging to Mr. Vijay connected September 30, 2015, and seized definite incriminating materials. The materials indicated that P.T. Selvakumar and Shibu of SKT Studios, producers of Puli, had paid him ₹4.93 crore successful currency isolated from the remuneration of ₹16 crore done cheques.
The producers had deposited the Tax Deducted astatine Source (TDS) lone for the cheque magnitude and not the currency transaction. When Mr. Vijay was confronted with the records, helium reportedly admitted to person received ₹5 crore successful currency and agreed to wage the taxes for it. When asked however overmuch of unaccounted income had helium earned successful the past six years, helium replied helium hadn’t received immoderate unaccounted currency but for the ₹5 crore for Puli.
Nevertheless, to cooperate with the I-T section and resoluteness the taxation issues successful an amicable manner, Mr. Vijay had agreed to disclose an further income of ₹15 crore (including the currency transaction of ₹5 crore) for the fiscal twelvemonth 2015-16 and wage the indispensable taxes for it.
Subsequently, connected July 29, 2016, helium filed his instrumentality of income for the appraisal twelvemonth 2016-17 declaring his full income to beryllium ₹35.42 crore, including the further ₹15 crore. While filing the returns, helium claimed depreciation of assets worthy ₹17.81 lakh and sought exemption for his fans’ nine expenses of ₹64.71 lakh.
However, the section disallowed his claims and passed an appraisal bid connected December 30, 2017, determining the taxable income to beryllium ₹38.25 crore. The appraisal bid besides stated that the histrion would not person disclosed the further income but for the hunt and seizure operation.
Therefore, the section imposed punishment nether Sections 271(1)(c) and 271AAB(1) of the I-T Act. Though helium chose to spell connected statutory entreaty against the appraisal bid arsenic good arsenic the punishment imposed nether Section 271(1)(c), the punishment nether Section 271AAB(1) unsocial was challenged by mode of a writ petition. Justice Senthilkumar Ramamoorthy dismissed the writ petition connected February 6, 2026.
Though a writ entreaty was filed against the dismissal order, it is yet to beryllium listed for proceeding earlier a Division Bench. In the meantime, referring to these incidents, the contiguous petitioner M. Rajkumar of Kodungaiyur successful Chennai had approached the tribunal seeking a absorption to the I-T section to initiate prosecution against Mr. Vijay and besides to the due instrumentality enforcement agencies to registry a FIR.
The petitioner has besides sought a absorption to the I-T section to spot the materials earlier the Directorate of Enforcement (ED) for the intent of ascertaining whether immoderate offence nether the Prevention of Money Laundering Act excessively had been committed.
