I-T department challenged a judgment by Income Tax Appellate Tribunal (ITAT) which allowed the actor tax deduction on his membership fee and depreciation on his car.
Now, the the Bombay High Court is destined to decide an appeal filed by the I-T department against the king Khan of Bollywood.
Earlier, the ITAT gave judgment in favour of Shahrukh Khan by claiming, "The BMW car purchased by the assesses (Khan) is covered by the definition of commercial vehicle … and used in the profession of the assesses."
However, I-T officials reiterated that Khan's BMW was registered as a personal vehicle and the assessing officer (AO) commissioner and the I-T officials pointed out that 20 percent deprecation is the maximum allowable figure for a personal vehicle. 50 percent depreciation is allowed only for commercial vehicles.
Meanwhile, I-T department challenged assessment for the year 2002-03, where Khan had sought deduction of Rs 15 lakh paid as membership fee of the Otters Club at Bandra in Mumbai.. He had claimed the amount was paid for professional use.
Now, High Court's decision will decide whether BMW is a boon or bane for the King Khan - Shahrukh Khan.