Amitabh's tax liability to be assessed again

Amitabh's tax liability to be assessed again

Amitabh's tax liability to be assessed again

The Supreme Court has allowed the Income Tax Department to reopen a tax case against mega star Amitabh Bachchan with regard to his income for the assessment year 2001-02.

A bench of justices Ranjan Gogoi and P C Pant held orders of the Mumbai's Income Tax Commissioner directing fresh assessment of tax liability of the Bollywood star as perfectly justified.

The court allowed two separate appeals filed by the Income Tax Department and set aside the orders of the Bombay High Court and the Income Tax Appellate Tribunal (ITAT).

“We are of the opinion that the present is a fit case for exercise of the suo motu revisional powers of the CIT under Section 263 of the (IT) Act,” the bench said.

“The (March 20, 2006) order of the Commissioner of Income Tax (CIT), therefore, is restored and those of the Tribunal dated August 28, 2007 and the high court dated August 7, 2008 are set aside. The appeal of the revenue is allowed,” the bench added.

The court also allowed the IT Department’s another appeal filed in 2013 and set aside the January 11, 2010 order of ITAT and the HC's February 29, 2012 order.

“However, we have to add that as the re-assessment order dated December 29, 2006 had not been tested on merits the assessee (Bachchan) would be free to do so, if he is so inclined and so advised,” the bench said.

Though the IT Department claimed the actor owed crores of rupees to it as taxes on his income he earned through the quiz show Kaun Banega Crorepati during 2001-02, the court did not consider the contention.