The Madras High Court has ruled in favor of filmmaker Gautham Vasudev Menon, quashing criminal prosecution by the Income Tax Department related to the non-filing of income tax returns by a Chennai-based production company. The court clarified that while Menon was granted relief, prosecution against other directors of the company would proceed as per the law.
The case involved Photon Kathas Production Private Limited, a film production and distribution company accused of not filing income tax returns for the assessment year 2013-14. The Income Tax Department had initiated prosecution under Section 276C of the Income Tax Act, 1961, which addresses wilful tax evasion.
During the proceedings, Menon’s counsel argued that he should not be held accountable as he had resigned from the company before the period under scrutiny. Evidence presented showed that Menon had resigned as a director in 2011, well before the financial year in question. The court, after reviewing the documents, concluded that continuing prosecution against Menon would be unjustified.
The court not only granted relief to Menon but also instructed the Additional District Court for Economic Offences in Chennai to expedite proceedings against the remaining accused and complete the trial within three months.
