Chennai, April 6 – The Madras High Court on Monday quashed the criminal prosecution initiated by the Income Tax Department against filmmaker Gautham Vasudev Menon, in connection with the alleged failure of a Chennai-based production company to file income tax returns.
Justice G.K. Ilanthiraiyan allowed the petition filed by Menon, which had been pending since 2023. However, the court clarified that the relief was granted solely to the petitioner, and that the prosecution against the remaining directors of the company would continue in accordance with the law.
The case concerned Photon Kathas Production Private Limited, a film production and distribution company, which was alleged to have failed to file income tax returns for the assessment year 2013-14.
The Income Tax Department had launched prosecution under Section 276C of the Income Tax Act, 1961, which deals with deliberate attempts to evade tax.
Besides the company, the department had also named several individuals as accused, including S. Venkatramanan, T.S.T. Ramanujam, Reshma Ghatala, and Gautham Menon, identifying them as directors responsible for the company's financial compliance during the relevant period.
During the hearing, Menon's counsel, Revathi Manivannan, argued that her client could not be held accountable, as he had resigned from the company well before the period under scrutiny.
She informed the court that Menon had been appointed as a director on June 1, 2010, and had stepped down from the position on May 2, 2011.
To support this claim, the defence produced Form 32 filed before the Registrar of Companies, which officially recorded Menon's resignation.
The counsel further pointed out that the alleged offence related to the financial year 2012-13, beginning April 1, 2012, almost a year after Menon had ceased to be a director.
After examining the documents, including the statutory filings, the court accepted the argument that Menon was not associated with the company during the relevant financial period.
Justice Ilanthiraiyan held that allowing prosecution against him to continue would be unjustified.
While granting relief to Menon, the court directed the Additional District Court for Economic Offences in Egmore, Chennai, to expedite proceedings against the remaining accused and complete the trial within three months.