Actor Rajinikanth who was facing penalty under section 271(1)(C) of the Income Tax (IT) Act, for an amount of Rs. 6.20 lakh for year 2002-03, Rs. 5.56 lakh for 2003-04 and Rs. 54.46 lakh for 2004-05 (total Rs. 66. 21 lakh) has found retribution, thanks to the new rules of the Central Board of Direct Taxes (CBDT).

On August 8, 2019, CBDT had issued a circular directing income tax authorities to not to go on appeal where the amount of tax was less than Rs. 1 crore and based on the same the IT department withdrew its appeal against Rajinikanth in Madras High court for concealment of income.

The IT department had filed the case on July 26, 2013 after Rajinikanth approached the Income Tax Appellate Tribunal (ITAT) claiming the Rs. 66.21 lakh penalty was imposed without any material evidence or investigation.