The Madras High Court quashed criminal proceedings against Gautham Vasudev Menon in an income tax case. Justice G. K. Ilanthiraiyan held resignation predated alleged default, allowing prosecution to continue against other directors.
CHENNAI: The Madras High Court set aside the criminal prosecution initiated by the Income Tax (I-T) department against filmmaker Gautham Vasudev Menon. The case related to alleged non-filing of income-tax returns by Chennai-based film production and distribution company Photon Kathas Production Private Limited for the assessment year 2013-14.
Justice G.K. Ilanthiraiyan allowed Mr. Menon’s quash petition, which had been pending since 2023, but clarified that the order applies only to the petitioner because he had resigned as a director of the company on May 2, 2011. The judge directed that prosecutions against the remaining directors should continue.
The court instructed the Additional District Court handling economic offences at Egmore, Chennai, to conclude the trial within three months. Mr. Menon’s counsel, Revathi Manivannan, informed the court that Photon Kathas was engaged in producing and distributing feature films and had multiple directors.
The I-T department had launched prosecution under Section 276C (willful attempt to evade tax) of the Income Tax Act, 1961. Alongside the company, the department named S. Venkatramanan, Mr. Menon, T.S.T. Ramanujam, and Reshma Ghatala as directors allegedly responsible for the non-filing.
ALSO READ: Madras High Court Orders Actor Vishal to Pay Rs 30 Crore to Lyca Productions
Ms. Manivannan told the court that Mr. Menon was appointed a director on June 1, 2010, and resigned on May 2, 2011. She produced Form 32 filed with the Registrar of Companies notifying the resignation and argued that he was not a director at the relevant time.
The counsel noted that the prosecution concerned non-filing for assessment year 2013-14, which pertains to the financial year 2012-13.
She submitted,
“The financial year begins from April 1, 2012, but the petitioner had resigned from the company in May 2011 itself,”
She urged that proceedings against him be quashed.
After examining the record, including Form 32, the judge concluded that prosecution against Mr. Menon could not be sustained and quashed it.
FOLLOW US FOR MORE LEGAL UPDATES ON YOUTUBE