The Madras High Court has recently ruled that just using a Tamil letter as the title of a film does not qualify it for entertainment tax exemption. H Sundararajan, the petitioner, had sought tax exemption for the film ‘I,’ starring Vikram.
While questioning the petitioner’s locus standi as a distributor, Judge SM Subramaniam pointed out that tax exemptions are granted to encourage filmmakers to utilise Tamil titles for their movies. The court stated that the concession can never be claimed as a ‘matter of right’ and it might be extended provided the authorities are satisfied and the terms are met.
“The mere use of the Tamil letter in a film cannot be a justification for the High Court to provide exemption from payment of entertainment tax in exercise of the powers under Article 226 of the Indian Constitution,” the judge said in a recent judgement.
Judge SM Subramaniam further stated that the expert committee thoroughly evaluated the merits of an application for tax exemption and the contents of the film before concluding that the title “I” cannot be regarded a Tamil title for the purpose of granting the benefit.
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