The Madras high court on Tuesday provided temporary relief to top actor Vijay, by staying the orders of the income tax department imposing a penalty of ₹1.5 crore on him for not voluntarily disclosing ₹15 crore in his IT returns for 2016-17.
Justice Anita Sumanth granted the stay on Tuesday 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 I-T department pertaining to the assessment year 2016-17.
He said the notice dated December 11, 2018 demanding the fine amount for 2016-17 was time barred and hence it is invalid. The I-T department had failed to appreciate the fact that having completed the assessment on December 30, 2017, the penalty proceedings u/s 271AAB of the I-T 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 nullity in law, he claimed.
{{/usCountry}}Any show cause notice issued beyond that date should be considered as nullity in law, he claimed.
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