SC asks Bachchan to reply to I-T department’s tax evasion petition

SC asks Bachchan to reply to I-T department’s tax evasion petition Following a petition filed by the Income-Tax Department, challenging the Bombay High Court order that provided tax relief to Bollywood superstar Amitabh Bachchan, the Supreme Court issued a notice to Bachchan on Monday.

The SC bench, consisting of Justice S S Kapadia and Justice Aftab Alam, has asked Bachchan to file a reply to the petition, which alleges that evaded tax on his earnings from the mega TV show, `Kaun Banega Crorepati.'

The HC had allowed Bachchan a 30 percent tax exemption on his Rs 50.92 crore cash earnings from the show. The concession was given on the basis of Bachchan's plea that he had spent 30 percent of his earnings, and transferred the remaining to his company Amitabh Bachchan Corporation Limited.

However, the I-Tax department issued a notice to Bachchan, under Section 263 of the I-T Act, asking him to give an account of the supposed 30 percent expenditure, but the actor sought relief under Section 80RR of the same Act, whereby an artist is entitled to get up to 30 percent tax waiver on his earnings abroad.

The I-T department argued that Bachchan was the anchor of the show, not an artist; and the show was not held abroad. But with HC going ahead with the waiver, the I-T department had to move the SC, which has put the matter for final hearing on October 28.