Tamil Actor D. Sivakarthikeyan receives Rs. 12.60 Lakh Income Tax Refund from Dept

Recently, Ayaalan Starrer-Tamil actor D. Sivakarthikeyan successfully obtained a refund of ₹12.60 lakh from the Income Tax department, marking the resolution of a TDS remittance issue before the Madras High Court.

The Madras High Court disposed of a writ petition filed by the actor in 2022, acknowledging the Income Tax Department's confirmation of the deposited amount in his bank account.

The petitioner Actor D Sivakarthikeyan sought that the Madras High Court direct the respondents 1 to 4 to refund a sum of Rs.91,16,490/- illegally recovered from the petitioner in contravention of the provisions of the Income Tax Act, 1961 along with interest.

In his affidavit, Sivakarthikeyan detailed a written agreement with Aadnah Arts, represented by K.E. Gnanavel Raja, for a movie role with a total consideration of ₹15 crore in 2018, excluding Goods and Services Tax ( GST )

The agreement outlined a payment schedule, including ₹2 crore before signing, ₹1 crore before shooting commencement, ₹7 crore during the shoot, ₹2 crore before dubbing completion, ₹2 crore before audio release, and the final ₹1 crore before theatrical release.

However, TDS mismatches of ₹65.50 lakh and ₹1.11 lakh were found for the assessment years 2019-20 and 2020-21, respectively, due to Gnanavelraja's failure to remit the TDS. The non-remittance led to the recovery of ₹91.16 lakh from Sivakarthikeyan's bank account in February 2022. Seeking a refund, the actor highlighted the producer's subsequent resolution of the matter, leading to the Income Tax Department refunding ₹12.60 lakh with interest.

The Madras High Court had passed the following order –

“Learned counsel appearing for the respondents would submit that they are in the process of releasing the Income Tax Refund for a sum of Rs.12,60,700/- along with interest for which the petitioner is entitled for. Accordingly, post the matter on 01.12.2023 under the caption “For Reporting Compliance”.”

The Income Tax Department also filed the proof with regard to the said deposit before the Madras High Court and submitted that the refund amount will be credited to the petitioner’s account on the day of hearing itself.

The case, listed before Justice Krishnan Ramasamy in December 2023, concluded with the court recording the I-T Department's submission and closing the writ petition.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates