Friday, 5 October 2012

LEGAL NEWS- TAX

Bombay HC grants relief to Amitabh Bachchan in IT case
 
25.7.2012 (UNI) The Bombay High Court granted relief to megastar Amitabh Bachchan by dismissing an appeal filed by the Income-Tax Commissioner who reopened the actor's assessment proceedings for 2002-03.

In their order passed recently, Justices M S Sanlecha and S F Vajifdar upheld an order of Income Tax Tribunal which, on March 19 2010, held that the assessment officer was not justified in starting proceedings under section 147 of IT Act against Amitabh.

The judges further ruled that Commissioner of Income Tax (Appeal) and Income Tax Tribunal had correctly come to a conclusion that there was no tangible material before the assessment officer to reach a reasonable belief that the income liable to tax had escaped assessment.



On October 13, 2002, Amitabh had filed returns stating his income at Rs 14.99 crore for Assessment Year 2002-03. Thereafter, on March 31, 2002, he filed revised returns declaring his total income for the assessment year 2002-03, wherein he claimed expenses at 30 per cent ad hoc amounting to Rs 6.31 crore and determining his income at Rs 8.11 crore.

However, before the assessment for the year 2002-03 could be completed, the actor, by a letter dated March 13, 2004, withdrew the revised returns along with his claim of deduction of 30 per cent ad hoc expenses from his total income.

Being aggrieved, the actor filed an appeal before the Commissioner of Income Tax (Appeals) challenging proceedings under section 147 of the Act and consequent completion of assessment by an order dated December 31, 2007.

On March 4 2009, the Commissioner of Income Tax (Appeal) set aside the reassessment order dated December 31, 2007, holding that the assessing officer had wrongly assumed jurisdiction under section 147 of the IT Act.

After that, he moved the High Court which observed that that the Commissioner of Income Tax (Appeal) as well as Income Tax Tribunal have correctly come to conclusion that there was no 'fresh tangible material' before the assessment officer to reach a reasonable belief that income liable to tax had escaped assessment. UNI

No comments:

Post a Comment