Madras HC drops income tax charges against Gautham Menon
What's the story
The Madras High Court has quashed the Income Tax (I-T) department's criminal prosecution against filmmaker Gautham Vasudev Menon. The case was related to the alleged failure of Photon Kathas Production Private Limited, a Chennai-based film production and distribution firm, to file its I-T returns for the assessment year 2013-14. Justice G.K. Ilanthiraiyan allowed Menon's quash petition, pending since 2023, on Monday.
Legal proceedings
Prosecution against other directors to continue
The court clarified that the prosecution was being quashed only against Menon as he had resigned from his position as director of the film production company on May 2, 2011. However, the judge ordered, per The Hindu, that the prosecution against other directors of the company will continue. An Additional District Court dealing with economic offense cases at Egmore in Chennai has been directed to complete the trial within three months.
Prosecution details
What is the case about?
The I-T department had initiated the prosecution against Photon Kathas under Section 276C (willful attempt to evade tax) of the Income Tax Act, 1961. Apart from the company, S Venkatramanan, Menon, TST Ramanujam, and Reshma Ghatala were also named in the case for their alleged role in the non-filing of I-T returns.
Resignation details
Menon not a director at relevant time: Counsel
Menon's counsel Revathi Manivannan informed the court that he was appointed as a director of Photon Kathas on June 1, 2010, but resigned from his position on May 2, 2011. She submitted Form 32 filed before the Registrar of Companies to notify about Menon's resignation and argued that he was not a director at the relevant time for which prosecution was initiated.
Court ruling
Court's ruling in favor of Menon
The court was informed that the prosecution was initiated for non-filing of returns for the assessment year 2013-14, which pertained to the financial year 2012-13. Manivannan argued that since the financial year started on April 1, 2012, and Menon had resigned in May 2011, he could not be held responsible for the non-filing of returns. After considering these facts, the judge ruled that the prosecution against Menon could not be allowed to continue.