Overview
- Vijay has moved a Division Bench to challenge a single judge’s order that upheld a Rs 1.5 crore income tax penalty, and the appeal has not yet been listed for hearing.
- Justice Senthilkumar Ramamoorthy earlier dismissed Vijay’s petition after finding the penalty order was issued within the permitted time under the Income Tax Act.
- Vijay’s argument focused on Section 275(1)(c), a rule that sets a short deadline for penalty orders, but the court said the clock ran out the same day the order was passed.
- The Rs 1.5 crore penalty came under Section 271AAB, a search-case provision that sets fines as a share of undeclared income, after a 2015 raid where Vijay admitted Rs 15 crore in cash and Rs 16 crore through banks.
- Related assessment issues included a Rs 2.92 crore ‘Release and Rasigar Mandram’ expense claim that the tribunal later allowed at 50%, and the dispute unfolds as Vijay leads TVK into the 2026 Tamil Nadu polls.