The infamous 2G spectrum scam, now 18 years old, has unexpectedly resurfaced to trouble Kalaignar TV Private Limited. The Income Tax (I-T) department has reignited its investigation into a significant sum of ₹200 crore received by the television channel during the financial years 2009-10 and 2010-11.
However, the Madras High Court has stepped in, issuing an interim stay on all proceedings. This decision comes after Kalaignar TV filed a writ petition, challenging the I-T department’s summons dated August 12, 2025, which demanded evidence and the production of financial records.
In its court submission, the TV channel asserted that it had originally filed income tax returns declaring losses of ₹3.59 crore and ₹6.39 crore for the respective assessment years. Despite this, an Assistant Commissioner of Income Tax rejected these declarations.
Following the assessments concluded on March 28, 2013, the officer determined the channel’s income to be substantially higher: ₹21.41 crore for 2009-10 and ₹177.27 crore for 2010-11. Although the assessment order was appealed, it was upheld by the Commissioner of Income Tax (Appeals) in March 2015.
A subsequent appeal to the Income Tax Appellate Tribunal proved more successful. In December 2016, the Tribunal overturned the assessment order, sending the case back to the Assistant Commissioner for a fresh review. By 2017, the department had resumed its inquiry, once again requesting documents from the television channel.
During this renewed probe, a show-cause notice was issued. It demanded an explanation as to why the ₹200 crore received by Kalaignar TV from Cineyug Media and Entertainment Private Limited should not be classified as undisclosed income, citing the charge sheet filed by the Central Bureau of Investigation (CBI) in the 2G spectrum case.
Kalaignar TV responded by providing records to substantiate the legitimacy of these transactions. Crucially, they also emphasized that a special court in Delhi had previously acquitted all individuals accused in the overarching 2G spectrum case. Despite these arguments, the Assistant Commissioner proceeded to affirm the proposed additions outlined in the show-cause notice.
This prompted the channel to launch a second legal battle against the assessment order, which was originally issued on December 31, 2017. Surprisingly, after eight years of pending appeal proceedings, an Assistant Director of Income Tax (Investigation) initiated a fresh inquiry in June 2025, sparking the current legal challenge.
The channel’s current writ petition directly questions the Assistant Director’s authority to conduct such an inquiry. It specifically challenges the notice issued by the officer on June 11, 2025, and the subsequent summons issued on August 12, 2025, pushing back against what it sees as an unwarranted re-examination.