HC admits I-T appeal against Big B

The Bombay High Court today admitted an appeal filed by the Income Tax (I-T) department against Bollywood megastar Amitabh Bachchan.

The dispute is about Bachchan's taxable income from his popular show 'Kaun Banega Crorepati' (KBC). While Bachchan claims that 70 per cent of this income went to his company ABCL and he is liable for paying tax for the remainder, the IT department is disputing this stand.

The Income Tax Appellate Tribunal (ITAT) had ruled in Bachchan's favour against which the I-T department filed appeal in the High Court last year.

While filing the return in 2001, Bachchan had declared income from KBC at 30 per cent of Rs 23 crore (total amount earned for KBC). Bachchan had claimed deduction as payment to his company Amitabh Bachchan Corporation Limited (ABCL).

"Bachchan was taxable for the entire income and not just 30 per cent as claimed by the actor," argued IT department's counsels Benny Chatterjee and G C Srivastav.

The I-T department had moved the Income Tax Appellate Tribunal in connection with this tax evasion, but the ITAT ruled in Bachchan's favour in May 2005, following which they appealed in the High Court.

The appeal will come up for hearing in due course.