Mumbai: The Bombay High Court has admitted an appeal filed by the Income Tax department, challenging relief granted to actress Aishwarya Rai Bachchan by the Income Tax Appellate Tribunal.
Justice S Radhakrishnan admitted the appeal, which relates to Aishwarya's tax assessment for 1996-1997. The department went to the High Court after the tribunal last year quashed its decision to re-examine Aishwarya's tax assessment.
IT Department's lawyer Benny Chatterjee argued that Aishwarya's income is not being questioned, but her getting exemption under NRI category was questionable.
Aishwarya, who had won Miss World title just then, cannot claim to be a Non Resident Indian for that period, he said.
Aishwarya had declared her taxable income for 1996-97 was Rs 2.14 lakh. But in 2003 authorities decided to examine her tax assessment, as her passport revealed that during the period she was not an NRI.
She was not outside the country for 186 days within that period, as required to qualify for income tax exemption under the NRI category, authorities said.
Therefore, she was asked to pay tax on the income of around Rs 26 lakh which she had earned abroad-after winning the beauty pageant with interest, Income Tax officials said.
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