Actor Shah Rukh Khan has secured a giant victory in a dispute with the Earnings Tax authorities, with the Earnings Tax Appellate Tribunal or ITAT delivering a verdict in his favour.
The dispute was associated to the tax of his film RA One, which was launched in 2011.
The IT division had disputed Mr Khan’s declared revenue of Rs 83.42 crore for 2011-2012, rejecting his claims for international tax credit score for taxes paid within the UK.
The division calculated his tax as Rs 84.17 crore, greater than 4 years later.
The ITAT dominated that reassessment of the case by the IT division was not legally justified.
The assessing officer had didn’t reveal “any contemporary tangible materials warranting a reassessment past the four-year statutory interval,” ITAT mentioned.
With the difficulty already been examined in the course of the preliminary scrutiny, the re-assessment proceedings have been dangerous in legislation on a couple of depend, ITAT mentioned.
Underneath Mr Khan’s settlement with the Purple Chillies Leisure, 70 per cent of the movie’s capturing was to happen in UK and so an equal share of his revenue can be topic to UK taxes.
The IT Division contended that such an association brought about income loss to India and the officers refused his declare for international tax credit score.
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