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This is an archive article published on March 26, 2009

IT dept moves SC against Big B in tax waiver case

HC had accepted the plea of Amitabh Bachchan that he should be given tax relief under section 80 RR of the Income Tax Act.

The Income Tax department has moved the Supreme Court challenging an order of the Bombay High Court which gave tax relief to Bollywood superstar Amitabh Bachchan on his income from popular TV game show ‘Kaun Banega Crorepati’.

The move came seven months after the Bombay High Court had allowed IT exemption on thirty percent of Bachchan’s total income of Rs 50.92 crore from the show.

The High Court had accepted the plea of the superstar that being an artist he should be given tax relief under section 80 RR of the Income Tax Act.

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The IT department in its appeal challenged the order on the ground that the relief is specifically given to those artists who either earn by performing outside the country or receive payment from foreign agencies.

It was submitted by the IT department that Bachchan was acting as an anchor in the television programme show for M/s Star India Limited and cannot be termed an artist for his role in the game show.

The actor received the payment from E-Entertainment Limited (EEL),a foreign company incorporated under the laws of the British Virgin Island.

The actor transferred 70 per cent of his earning to his company M/s Amitabh Bachchan Corporation Limited.

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The actor was said to have no objection over imposition of tax on 70 percent of his total earnings from the show,which was transferred to the company.

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