Filmmaker Karan Johar moves HC challenging I-T notice

Bollywood filmmaker Karan Johar has moved the Bombay High Court challenging a notice issued by the Income Tax department which claimed that more than Rs two crore profits from his film 'Kabhi Alvida Na Kehna' were not disclosed during the assessment year 2006-07.
In the petition, Johar said the Assistant Commissioner of Income Tax, Circle 31, had issued a notice to him on March 20, 2012, under Section 148 of Income Tax to reopen the assessment for the year 2006-07.
Under this section, an officer has the powers to reopen assessment if he believes certain income had escaped notice.
"I have a reason to believe that an income of Rs two crore plus has escaped assessment," the notice quoted the officer as saying.

Johar said he had declared an income of Rs 14.73 crore during that assessment year (2006-07) which included profits made from the film.
However, the I-T department claimed that according to its assessment, the film reported earnings of Rs 70.1 crore while the total cost of production was Rs 57.44 crore. It was alleged that Johar did not disclose complete details of the expenditure involved in making the film.

Johar has urged the High Court to quash the I-T notice sent to him saying that it was illegal and the I-T officer who issued it had no reason to believe that he (Johar) had withheld information.

The filmmaker also prayed that action taken after the notice was issued to him should also be quashed.
A bench of Justices D Y Chandrachud and A A Sayed are likely to hear the petition on March 6.