Mumbai:
The Income-Tax department hasfiled an appeal in Bombay High Court against an order of itstribunal allowing Bollywood actor Shah Rukh Khan to seek taxreliefs for using his membership at a club in suburban Bandraand his BMV Range Rover car for professional reasons.
The appeal came up for hearing on February 14 beforejustices J P Devadhar and Mridula Bhatkar who posted thematter for arguments after four weeks.
During the assessment year 2002-2003, the actor hadsought deduction of Rs 15 lakh paid by him as membership feeto Otters Club saying it was for professional use.
Assessmentofficer rejected his claim following which Shah Rukh appealedbefore Commissioner of Income Tax, who also turned down hisplea. He then moved the I-T tribunal which ruled in hisfavour.
The I-T department contended in its appeal that theTribunal had erred in holding that the onus to prove that theactor had drawn personal benefits from the club's membership,was on the department.
With regard to tax relief claimed on BMW car, theactor had claimed 50 per cent depreciation at Rs 17 lakh whichwas rejected by the assessment officer. He was of the viewthat the actor could claim only 20 per cent and had ruled that50 per cent was allowed only in the case of commercialvehicles.
Shah Rukh then approached the Commissioner of IncomeTax by filing an appeal but it was rejected. He then moved theI-T Tribunal which ruled in his favour. Being aggrieved, theI-T department filed an appeal in the high court.
The appeal came up for hearing on February 14 beforejustices J P Devadhar and Mridula Bhatkar who posted thematter for arguments after four weeks.
During the assessment year 2002-2003, the actor hadsought deduction of Rs 15 lakh paid by him as membership feeto Otters Club saying it was for professional use.
Assessmentofficer rejected his claim following which Shah Rukh appealedbefore Commissioner of Income Tax, who also turned down hisplea. He then moved the I-T tribunal which ruled in hisfavour.
The I-T department contended in its appeal that theTribunal had erred in holding that the onus to prove that theactor had drawn personal benefits from the club's membership,was on the department.
With regard to tax relief claimed on BMW car, theactor had claimed 50 per cent depreciation at Rs 17 lakh whichwas rejected by the assessment officer. He was of the viewthat the actor could claim only 20 per cent and had ruled that50 per cent was allowed only in the case of commercialvehicles.
Shah Rukh then approached the Commissioner of IncomeTax by filing an appeal but it was rejected. He then moved theI-T Tribunal which ruled in his favour. Being aggrieved, theI-T department filed an appeal in the high court.
