Shah Rukh Khan recently won a significant legal battle against the Income Tax Department. The Income Tax Appellate Tribunal (ITAT) ruled in his favor, quashing the reassessment proceedings initiated for the financial year 2011-12. The dispute revolved around the taxation of his remuneration for the movie “RA One,” which was partially shot in the UK. Shah Rukh had claimed foreign tax credit for taxes paid in the UK, but the tax authorities denied this and reassessed his income at a higher amount.
The ITAT found that the reassessment was conducted beyond the statutory four-year period and lacked fresh tangible evidence to justify it. The tribunal also noted that the matter had already been examined during the initial scrutiny assessment. This ruling not only marks a victory for Shah Rukh Khan but also reinforces the legal framework protecting taxpayers from arbitrary reassessments.
