Shah Rukh Khan has won a long-running tax dispute related to his 2011 film Ra One. The Income Tax Appellate Tribunal (ITAT) ruled in his favour and cancelled the reassessment order issued by tax authorities.
Shah Rukh Khan Gains Victory In Years-Long Tax Dispute
The case was linked to Khan’s earnings from Ra One, which was produced under his banner Red Chillies Entertainment. Since nearly 70% of the film was shot in the UK, a large part of his earnings (around Rs 83.42 crore) was taxed under UK laws, including withholding tax.
Khan had declared this income in his 2012-13 tax return and claimed a Foreign Tax Credit (FTC) to offset the taxes he had already paid in the UK. However, tax authorities rejected his claim and reassessed his income at Rs 84.17 crore, stating that he had underpaid his taxes. This led to a reassessment beyond the four-year statutory limit under Section 147 of the Income Tax Act.
ITAT’s Verdict In Favour Of SRK
The ITAT bench led by Sandeep Singh Karhail and Girish Agrawal ruled that the reassessment was invalid. The tribunal stated that the tax officer did not provide any ‘fresh tangible material’ to justify reopening the case after the deadline had passed.
It also noted that Khan had already disclosed his foreign income and FTC details in his original filings, which had been reviewed under Section 143(3). The bench stated that reopening the case was simply a ‘change of opinion’ and was not legally justified.
This ruling puts an end to Khan’s long legal battle. Shah Rukh Khan has not yet reacted to the verdict yet.
Shah Rukh Khan: Work Front
On the work front, he was last seen in Dunki (2023), directed by Rajkumar Hirani and co-starring Taapsee Pannu. The film received mixed reviews but performed well at the box office.
Next, he will star in King, directed by Siddharth Anand. It is expected to begin shooting in May 2025. Recently, Khan attended the IIFA 2025 event in Jaipur, where he performed and entertained his fans.
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