A three-judge bench headed by Chief Justice S H Kapadia dismissed the petition stating there was no merit in it. Bhupathi will have to pay tax on Rs 28.5 lakh, which he maintained, was paid to his father in return for funding his training during 1989-90 and 1993-94.
The high court had earlier upheld the order of the International Taxation Wing of the Income Tax department, rejecting Bhupathi’s contention that he had reimbursed the amount to his father C G Krishna Bhupathi.
The IT authorities had submitted before the high court that the 'agreement' between the father and son was entered into to avoid tax and was contrary to the very foundation of Hindu law.
The HC said it was the pious and moral obligation of the father to maintain the son during his minority or till he independently started earning.