In a major victory for Shah Rukh Khan, the Income Tax Appellate Tribunal (ITAT) has ruled that the reassessment of his net earnings by the Income Tax Department for FY 2012-13 was completely unlawful and flawed.
The matter originated due to an agreement between SRK and Red Chillies Entertainment regarding the 2011 film Ra.One.
The agreement said that 70% of the movie would be shot in the UK, hence revenue from the same would be subject to taxation from the UK authorities, and not India.
This apparently did not sit well with the Income Tax Department in India, who took it as a loss of revenue for the country.
This led to a complete reassessment of the actor’s income at Rs.84.17 Crores, more than 4 years after the completion of the FY 2012-13.
The tribunal declared this to be illegal, providing major relief to the superstar.
Such prestigious institutions should do their due diligence before deciding to go after a high-profile case like this.
Failure to present meaningful and solid evidence will only prove that baseless claims and ego-driven actions are given much more preference than actual administrative work.
