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23
March 2017
 |
Shah Rukh Khan's (The Total Investment & Insurance
Solutions)
The
Income Tax Appellate Tribunal here has rejected Bollywood actor Shah Rukh
Khan's claim and ordered that he must include the notional rent accruing from
his villa in Dubai in his income tax returns filed in India. The Total Investment & Insurance Solutions
However,
the ITAT bench comprising Amit Shukla and G.S. Pannu ruled that the credit for
taxes Shah Rukh paid in the UAE, if any, would be allowed as per the law.
The
actor had submitted before the tibunal that since income from his immovable
asset in Dubai would be taxed in the UAE as per the India-UAE tax treaty, he
did not offer it for taxation in India. The
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Rejecting
his claim, the ITAT asked the IT Department to rework Shah Rukh's final
liability under the head 'Income from house property'.
In
2007, the developers of the famous Palm Jumeirah project had gifted to Shah
Rukh the luxurious sea-front villa on a 14,000 square feet plot in Dubai.
A
year later, Shah Rukh took possession of the property, comprising the 8,500
square feet six-bedroom villa with an exclusive beach and a private pool.
For
the FY 2008-2009, the IT Department estimated the deemed rental value to be
around Rs 9.6 million and after the standard deduction of 30 per cent, Shah
Rukh was taxed for nearly Rs 60.72 lakh. The
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When
Shah Rukh challenged this, the IT Commissioner (Appeals) upheld the
department's action on the basis of a clarification issued by the Central Board
of Direct Taxes vide a notification dated August 28, 2008. The Total Investment & Insurance Solutions
The
notification said that when a tax treaty entered into by India states that
income of a tax resident of India 'may be taxed' in the other country, such
income shall be first included in his taxable income in India. The Total Investment & Insurance Solutions
Subsequently,
relief could be granted for taxes, if any, paid overseas, according to the
notification. The Total Investment & Insurance
Solutions
Shah
Rukh filed an appeal with the ITAT, which has now been rejected. The Total Investment & Insurance Solutions
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