The court ruled that the penalty order was valid and within the statutory time limits under the Income Tax Act.
The case stems from income tax searches conducted at Vijay’s premises in September 2015, during which officials reportedly unearthed evidence that the actor had received approximately ₹16 crore in remuneration for Puli, including nearly ₹5 crore in cash that was not initially reflected in his tax returns. The department later initiated penalty proceedings under Section 271AAB(1) of the Income Tax Act, resulting in a penalty order dated June 30, 2022.
Vijay had challenged the penalty, contending that the demand was time-barred and should have been issued earlier, but the High Court, presided over by Justice Senthilkumar Ramamoorthy, rejected this argument. The court found “no infirmity warranting interference” in the order and upheld the department’s action, while clarifying that Vijay remains free to appeal on other legal grounds before the appropriate appellate authority. .
The ruling arrives at a politically sensitive time, as Vijay has recently launched his party, Tamilaga Vettri Kazhagam (TVK), and is preparing to contest the 2026 Tamil Nadu Assembly elections. Political observers say the verdict could be seized upon by rivals amid the actor’s transition from cinema to full-time politics.