Amitabh Bachchan dragged to Supreme Court
Bollywood superstar Amitabh Bachchan is in trouble. His earnings and paid tax amount have been questioned by the Income Tax Department.
Income Tax Department has found it fit to drag the actor to court over the tax he was supposed to pay for his earnings from “Kaun Banega Crorepati”.
This Tuesday the Supreme Court took up the petition that was filed by Income Tax Department that claimed that the superstar owes Rs 1.66 crore as his tax amount solely from the income he amassed by hosting the reality quiz show KBC during the year of 2001-2002.
The bench of Justice Madan B Lokur and Justice DK Jain issued a notice to the actor seeking response against the petition that was filed against an order that was issued in the Bombay High Court. The order dismissed the IT department’s plea that defied the exemption that was granted to Bachchan in the year 2010 by the Income Tax Appellate Tribunal (ITAT). The IT Department’s plea was dismissed by the Bombay High Court on the 29th of February, 2012.
The petition of the Income Tax Department has claimed that the actor has produced only Rs 3.23 crores as his taxable income meant for assessment year of 2001-2002. The Assessing Officer (AO) has assessed the total amount of income by Amitabh Bachchan to be roughly around Rs 26 crore. The Assessing Officer’s order was sustained by the Commissioner of the Income Tax Department however ITAT had dismissed these orders against which these authorities are now moving court.
A similar kind of plea is also pending since the month of May 2009, in Apex Court which too had issued a notice to the star. In the year 2008, High Court had permitted an IT exemption of 30% of the star’s gross income of Rs 50.92 that he had collected from the show. The actor’s plea was accepted that claimed that he was an artiste and thus was entitled to get a tax relief under the Income Tax Act’s Section 80 RR.
The Income Tax Department, on the other hand, had challenged such a decision on the grounds of the relief being for those artistes who were earning either by performing outside their country or was receiving payment from other foreign agencies. Thus Bachchan who was the host of “Kaun Banega Crorepati” was working in the show that was part of ‘Star India Ltd.’, and thus is not applicable for such a tax relief.