I-T moves HC against tax reliefs sought by Shahrukh Khan

Mumbai, Feb 17 (PTI) The Income-Tax department has filedan appeal in Bombay High Court against an order of itstribunal allowing Bollywood actor Shah Rukh Khan to seek taxreliefs for using his membership at Otters Club in suburbanBandra and his BMV Range Rover car for professional reasons.

The appeal came up for hearing on February 14 beforeJustice J P Devadhar and Justice Mridula Bhatkar who postedthe matter for arguments after four weeks.

During the assessment year 2002-2003, the actor hadsought deduction of Rs 15 lakhs paid by him as membership feeto Otters Club saying it was for professional use. Assessmentofficer rejected his claim following which Shahrukh 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, the actorhad claimed 50 per cent depreciation at Rs 17 lakh which wasrejected by the assessment officer. He was of the view thatthe actor could claim only 20 per cent and had ruled that 50per cent was allowed only in the case of commercial vehicles.

Shahrukh then approached the Commissioner of Income Taxby filing an appeal but it was rejected. He then moved the I-TTribunal which ruled in his favour. Being aggrieved, the I-Tdepartment filed an appeal in the High Court.