Actor Shah Rukh Khan has won a major victory in his dispute with the income tax agency, and the Income Tax Appeal Tribunal or ITAT has ruled in his favor.
The dispute is related to the tax on his film RA One, which was released in 2011.
The IT department’s announced revenue to Mr Khan was Rs 83.42 crore in 2011-2012, denied his claim for foreign tax credits paid by the UK.
More than four years later, the department calculated its taxes to Rs 8,417 crore.
ITAT ruled that there is no legal rationality for IT departments to reassess the case.
Itat said the appraisal officer failed to prove that “any fresh tangible material needs to be re-evaluated within a four-year statutory period.”
Itat said that since the issue was already checked in the initial review, the reassessment process was legally terrible more than once.
According to Mr Khan’s agreement with Red Chillies Entertainment, 70% of the film’s shooting was conducted in the UK, so an equal percentage of his income would be subject to UK taxes.
IT departments believe the arrangement caused a loss of income for India, and officials rejected his request for foreign tax credits.
