The Income Tax Appellate Tribunal (ITAT) in Jun 2009 favoured Khan in a case. The I-T department challenged the ITAT's decision, though the Bombay High Court on Jun 6, 2011 ruled out the petition.
Khan was alleged in a tax evasion case of Rs 4 crore. A re-assessment by the I-T department claimed that Khan's income was Rs 13.61 crore, though the actor showed his income as Rs 9.32 crore.
The High Court ruled out the case claiming absence of a mandatory notice against the Bollywood superstar. The same argument had helped Khan to escape similar kind of tax evasion case in the past. Khan's lawyer argued in the court that no notice had been issued to the actor, though the notice was mandatory to start of the income assessment proceedings.