SRK gets relief in Income Tax cases, but has to pay tax for Dubai villas

In a relief to Shah Rukh Khan, the Income Tax Appellate Tribunal (ITAT) has given him a clean chit in two Income Tax cases filed against the superstar last year. With the decision, the ‘Raees’ actor has been exempted from paying Rs 10 crore that he received for hosting ‘Kaun Banega Crorepati 3’, and another Rs 7 crore that he charged from Star Plus, the channel where the show was aired.

Shah Rukh was supposed to host 104 episodes of the game show, but due to the poor TRP ratings, the channel shelved the show after only 52 episodes. However, the actor didn’t return the money to the channel, but instead, signed a deal awarding the sponsorship rights of his IPL franchise KKR to Star Plus. Shah Rukh claimed that the Rs 10 crore he got paid was not actually his earning but an expense, and hence it should be deducted from tax, according to a report in The Economic Times.

“The loss suffered by Star India due to non-production of another season of KBC with SRK was sought to be recouped by SRK with the earnings from the sponsorship of KKR IPL team. So, SRK paid Rs 10 crore to get sponsorship of KKR for Star India, even though he was not legally liable to incur such a huge sum,” a website quoted director of Taxmann as saying.

In the second case where Shah Rukh was asked to pay Rs 7 crore as tax for his income earned from the promotions of KBC with the Star team in Dubai and London, ITAT yet again gave a decision in favour of King Khan and told the I-T department that they cannot demand such additions. During the investigations, Shah Rukh has always maintained that he never attended any promotional events as they never happened.

However, Shah Rukh will have to pay tax for his Dubai villas in India and not in UAE, according to the new rules set by ITAT.