Actor Shah Rukh Khan won a long-standing tax dispute, and the Income Tax Appeal Tribunal (ITAT) was in his favor. The court recently canceled the reassessment process initiated by the income tax authorities for the fiscal year 2011-12.
Shah Rukh Khan won the tax battle as ITAT dismissed RA’s case.
Background of Shah Rukh Khan Tax Case
The case revolves around Shah Rukh Khan’s 2011 film revenue Ra. Onethe red peppers produced under his banner. According to the agreement between Khan and the production company, 70% of the film’s shooting took place in the UK, meaning a large portion of his salary (estimated at Rs 8342 crore) is taxed in the UK, including tax deductions. Khan announced this income in the original tax return for the 2012-13 assessment year, claiming that the Foreign Tax Credit (FTC) offsets taxes paid abroad against Indian tax liability.
However, income tax officials rejected Khan’s FTC claim, reassessing his income to Rs 8,417 crore and accusing his taxes not high. The reassessment began with a four-year statutory restriction set forth in Section 147 of the Income Tax Act, triggering a legal battle that has now ended with the ITAT ruling.
ITAT’s ruling: Shah Rukh Khan’s victory
The ITAT bench, composed of Sandeep Singh Karhail and Girish Agrawal, ruled that the reassessment procedure was invalid. The court explained that the appraisal officer failed to provide “fresh materials” to justify the retrial of the case after the statutory deadline. In addition, the bench noted that Khan fully disclosed his foreign income and tax credits in his original document, which had been reviewed under Section 143(3). This makes the case of reevaluating “just change opinions” legally unreasonable.
On the other hand, SRK has not publicly commented on the ruling as of March 10, 2025. Speaking of professional front, he appeared in Butyl2023 version directed by Rajkumar Hirani. The film also features Taapsee Pannu. The actor will be in Siddharth Anand’s king.
Also Read: IIFA Award Jaipur: Drone Lighting Show Celebrates Shah Rukh Khan; Superstars Are on Fire. Dancing with Madhuri Dixit proved to be the icing on the cake
More pages: RA. A box office collection, RA. A movie review
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