Amitabh Bachchan To Face 2001 Tax Case Again, Rules Supreme Court

New Delhi: In a setback for megastar Amitabh Bachchan, the Supreme Court today allowed the Income Tax department to reopen a 2001 tax case against him. The I-T department says the actor owes Rs 1.66 crore in taxes for his show Kaun Banega Crorepati for the year 2001-2002.

In July 2012, the Bombay High Court had granted relief to Mr Bachchan by dismissing an appeal filed by the Income Tax Commissioner who reopened the actor's assessment proceedings for 2001-2002.

The Income Tax department had moved the Supreme Court against the High Court order.

In income tax return filed on October 13, 2002, the actor had stated Rs. 14.99 crore as his income for the assessment year 2001-2002. On March 31, 2002, he filed revised returns declaring his total income for the assessment year 2001-02 as Rs. 8.11 crore. However, before the assessment could be completed, the actor withdrew the revised returns.

On March 29, 2005, the Assessing Officer completed the assessment determining the actor's income at Rs. 56.41 crore. On April 5, 2006, a notice was issued to Mr Bachchan seeking to reopen the assessment proceedings.

Among the reasons given for reopening assessment were that books of accounts kept by the actor were not examined and that although he had seven bank accounts, he had given details only of six of them. Besides, he had withdrawn revised returns wherein he showed 30 per cent expenses for professional causes.

A similar plea is pending since May 2009 in the top court which had earlier issued a notice to the megastar.

In 2008, the High Court had allowed I-T exemption of 30 per cent on Mr Bachchan's total income of Rs. 50.92 crore from the show.

The High Court had accepted the actor's plea that being an artiste he should be given tax relief.

The I-T department in its appeal had challenged the order on the ground that the relief is for those artistes who either earn by performing outside the country or receive payment from foreign agencies.

It was submitted by the I-T department that Mr Bachchan was acting as an anchor in the television programme show for Star India Ltd and cannot be termed artiste for his role in the show.