I-T dept allowed to re-open Bachchan's KBC case

Two-judge bench sets aside a 2012 Bombay HC order favouring Bachchan, barring Dept from probing his earnings further

The Supreme Court on Wednesday allowed the income-tax (I-T) department to re-open a tax assessment case relating to actor Amitabh Bachchan’s 2001-2002 earnings from the TV (television) show Kaun Banega Crorepati.

Bachchan had first stated his 2001-2002 earnings as Rs 14.99 crore. The figure was revised to Rs 8.11 crore, and then the statement was withdrawn.

In 2005, the I-T department determined the actor’s income for the period as Rs 50. 41 crore and assessed an additional demand of Rs 1.66 crore.

The Supreme Court on Wednesday set aside a 2012 Bombay High Court order in favour of Bachchan, which prohibited the I-T department from investigating the matter further.

Bachchan's chartered accountant and legal advisory team said the case had no relation to Kaun Banega Crorepati, and the matter had not been reopened. In 2008, the high court allowed Bachchan 30 per cent exemption from his KBC earnings under the income-tax Act, after he claimed exemption on the grounds of being an artist.

The I-T department said that Bachchan’s nature of work as an anchor for STAR India did not qualify him for the relief. The department said the exemption was applicable to artistic performances abroad or payments by foreign entities to Indian artists.

The I-T department appealed for re-opening of the assessment on the grounds that the actor’s books of accounts had not been scrutinised and that Bachchan had not previously declared one of his seven bank accounts to the department.

In response to today's media reports pertaining to the Supreme Court setting aside the High Court order that gave tax relief to Bachchan, here's the official response from Chartered Accountants and Legal Advisory team of Bachchan:

"Point 1: The said mentioned case has no relation to KBC (Kaun Banega Crorepati) whatsoever in any matter or context

Point 2: The said mentioned case has not been reopened.
 
Point 3: The Supreme Court has given the respondent, i.e. 'Mr Amitabh Bachchan', the right to appeal against the re-assessment order."