Bollywood actor Salman Khan, when asked by the Income Tax (I-T) Department to account for undisclosed cash income of nearly Rs4 crore, dismissed it as a figment of his former secretary’s imagination.
The Bombay high court is slated to hear the I-T’s appeal against a 2009 order passed by the Income Tax Appellate Tribunal, which ruled in Khan’s favour in an alleged evasion of tax for assessment year 2000-01.
Khan had declared his income for financial year 2000-01 at Rs9.32 crore. However, a reassessment put his income at Rs13.61 crore.
The details of this income were revealed in post-assessment searches by I-T at the premises of his then secretary Sudhir Wahi on November 23, 2000.
The reassessment was opened on the basis of cash receipts worth Rs2.45 crore recovered from producers Shyam Bajaj and Bobby Kent and cash loaned to producer KC Bokadia along with interest earned.
Khan challenged the assessing officer’s order with the Commissioner of Income Tax-Appeals saying no notice mandatory under Section 143 (2) was issued to him before starting the assessment proceedings.
The commissioner upheld the order but had granted relief to Khan. The I-T department then appealed in the tribunal, which in June 2009 ruled in Khan’s favour.
The tribunal observed that the assessment framed by the commissioner was bad in law, cancelled the assessment without deciding the issue on merit. I-T has urged the high court to set aside the tribunal’s order and has also sought a stay on it pending disposal of the appeal.
http://www.dnaindia.com
The Bombay high court is slated to hear the I-T’s appeal against a 2009 order passed by the Income Tax Appellate Tribunal, which ruled in Khan’s favour in an alleged evasion of tax for assessment year 2000-01.
Khan had declared his income for financial year 2000-01 at Rs9.32 crore. However, a reassessment put his income at Rs13.61 crore.
The details of this income were revealed in post-assessment searches by I-T at the premises of his then secretary Sudhir Wahi on November 23, 2000.
The reassessment was opened on the basis of cash receipts worth Rs2.45 crore recovered from producers Shyam Bajaj and Bobby Kent and cash loaned to producer KC Bokadia along with interest earned.
Khan challenged the assessing officer’s order with the Commissioner of Income Tax-Appeals saying no notice mandatory under Section 143 (2) was issued to him before starting the assessment proceedings.
The commissioner upheld the order but had granted relief to Khan. The I-T department then appealed in the tribunal, which in June 2009 ruled in Khan’s favour.
The tribunal observed that the assessment framed by the commissioner was bad in law, cancelled the assessment without deciding the issue on merit. I-T has urged the high court to set aside the tribunal’s order and has also sought a stay on it pending disposal of the appeal.
http://www.dnaindia.com
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