High Court Stays Income Tax Penalty Order Of Rs 1.5 Crore On Actor Vijay

Justice Anita Sumanth granted the stay today while admitting a petition from Vijay, challenging the penalty imposed by the department, based on raids conducted at his residence in 2020.

High Court Stays Income Tax Penalty Order Of Rs 1.5 Crore On Actor Vijay

Vijay sought to quash the order of the IT department pertaining to the assessment year 2016-17.

Wayanad (Kerala):

The Madras High Court on Tuesday provided temporary relief to actor Vijay, by staying the orders of the Income Tax department and imposing a penalty of Rs 1.5 crore on him for not voluntarily disclosing Rs 15 crore in his Income Tax (IT) returns for 2016-17.

Justice Anita Sumanth granted the stay today while admitting a petition from Vijay, challenging the penalty imposed by the department, based on raids conducted at his residence in 2020.

Conceding the contention of Vijay that the punitive action was time-barred, the judge granted the interim injunction.

In his petition, Vijay sought to quash the order of the IT department pertaining to the assessment year 2016-17. He said that the notice dated December 11, 2018, demanding the fine amount for 2016-17 was time-barred and hence it is invalid.

The Income Tax department had failed to appreciate the fact that having completed the assessment on December 30, 2017, the penalty proceedings u/s 271AAB of the IT Act for the surrendered income/ undisputed income should be initiated and completed on or before June 30, 2018.

Any show-cause notice issued beyond that date should be considered as a nullity in law, he claimed.

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