Bollywood superstar Shah Rukh Khan has emerged victorious in a tax dispute after the Income Tax Appellate Tribunal (ITAT) ruled in his favor. The tribunal recently quashed reassessment proceedings initiated by the Income Tax authorities for the financial year 2011-12.
The Dispute Over RA.One Earnings
The case revolved around Khan’s income from his 2011 sci-fi film RA.One, produced under his banner, Red Chillies Entertainment. As per the agreement, 70% of the film’s shooting took place in the UK, meaning a significant portion of his earnings—estimated at ₹83.42 crore—was subject to UK taxes, including withholding tax.
Khan had declared this foreign income in his tax return for the Assessment Year 2012-13, claiming a Foreign Tax Credit (FTC) to offset taxes paid abroad against his Indian tax liability. However, the Income Tax officer rejected his FTC claim, reassessing his income at ₹84.17 crore and alleging underpayment of tax.
ITAT’s Ruling in Favor of SRK
The reassessment, initiated beyond the four-year statutory limit under Section 147 of the Income Tax Act, led to a legal battle that has now ended in Khan’s favor. The ITAT bench, comprising Sandeep Singh Karhail and Girish Agrawal, ruled that the reassessment proceedings were invalid.
The tribunal stated that the assessing officer failed to present any “fresh tangible material” to justify reopening the case after the statutory deadline. It also noted that Khan had already disclosed his foreign income and tax credits in his original tax filing, which had been scrutinized under Section 143(3). This made the reassessment a case of “mere change of opinion,” rendering it legally unjustified.
Shah Rukh Khan’s Response and Upcoming Projects
As of March 10, 2025, Shah Rukh Khan has not publicly commented on the ITAT ruling.
On the professional front, he was last seen in Rajkumar Hirani’s Dunki (2023) alongside Taapsee Pannu. His next film, King, directed by Siddharth Anand, is highly anticipated.
