SC pulls up I-T Dept for allowing Bachchan to withdraw claim

The Supreme Court today pulled up the income tax authorities for allowing actor Amitabh Bachchan to withdraw his security expense claim amounting to 30 per cent of around Rs 6.90 crore, the star’s income from popular TV game show ‘Kaun Banega Crorepati’ in 2001-02.

A Bench headed by Justice S H Kapadia pulled up the tax authorities for allowing Bachchan to withdraw his security expense claim, saying that it had happened for the first time in his experience. It gave two weeks to the department to clarify the matter.

The question arose in an appeal filed by the Income Tax Department, challenging a Bombay High Court judgment of August 7, 2008, which dismissed its plea and upheld the sectoral tribunal order that allowed Bachchan to withdraw his expense claim.

Earlier last month, the I-T Department had challenged another order of the high court which allowed exemption on 30 per cent of Bachchan’s total income of Rs 50.92 crore from the show on the grounds that the actor, being an artiste, should be given tax relief under Section 80 RR of the Income Tax Act.

Additional Solicitor General Gopal Subramanium today submitted that he would clarify within two weeks on withdrawal of the security expense claim of 30 per cent of Rs 6.90 crore Bachchan earned in 2001-02.