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I-T dept withdraws appeal against Rajinikanth over penalty

PTI
Updated: January 28th, 2020, 18:49 IST
in Entertainment, National
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Chennai: The Madras High Court dismissed Tuesday as withdrawn an Income Tax department appeal against film star Rajinikanth in respect of assessment for three years from 2002-03 after the department cited a CBDT circular doing away with further legal challenge in matters involving amount less than Rs 1 crore.

A bench of justices Vineet Kothari and R Suresh Kumar passed the order after the department submitted it was withdrawing the appeal against July 26, 2013 order of the Income Tax Appellate Tribunal (I-TAT) which had allowed the actor’s plea against the assessment orders levying penalty on income totalling over Rs 66 lakh.

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Counsel for the department said the Central Board of Direct Taxes (CBDT) had issued a circular August 8, 2019 directing authorities not to go on appeal where the amount of tax was less than Rs 1 crore.

In the present appeal filed by the Commissioner of Income Tax, Chennai, the amount claimed by the department for all the three assessment years was less than Rs. 1 crore, the counsel informed.

The matter related to an order passed by the Assessment Officer levying penalty under section 271(1)(C ) of the Income Tax Act assessing an amount of Rs 6.20 lakh for the assessment year 2002-03, Rs.5.56 lakh for AY 2003-04 and Rs. 54.46 lakh for AY 2004-05.

Aggrieved by it, Rajinikanth filed an appeal before the IT (Appeal) which dismissed it. He then approached the I-TAT which had allowed his appeal, holding that the penalty was imposed without any material evidence or investigation.

Challenging this, the I-T department had filed the present appeal in the Madra High Court.

PTI

 

Tags: CBDTCommissionerIncome TaxMadras High CourtRajinikanth
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