Actor Shah Rukh Khan has emerged victorious in a long-standing tax dispute, with the Income Tax Appellate Tribunal (ITAT) ruling in his favor. The tribunal recently quashed reassessment proceedings initiated by the Income Tax authorities for the financial year 2011-12.
Background of the Shah Rukh Khan Tax Case The case revolves around Shah Rukh Khan’s income from his 2011 film RA.One, produced under his banner, Red Chillies Entertainment. As per the agreement between Khan and the production house, 70% of the film’s shooting took place in the UK, meaning a substantial portion of his remuneration—estimated at Rs 83.42 crores—was subject to UK taxes, including withholding tax. Khan declared this income in his original 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 Khan’s FTC claim, reassessing his income at Rs 84.17 crore and alleging underpayment of tax. The reassessment, initiated beyond the four-year statutory limit under Section 147 of the Income Tax Act, sparked a legal battle that has now concluded with the ITAT’s ruling. ITAT’s Ruling: A Triumph for Shah Rukh Khan The ITAT bench, comprising Sandeep Singh Karhail and Girish Agrawal, ruled that the reassessment proceedings were invalid. The tribunal explained that the assessing officer failed to provide “fresh tangible material” to justify reopening the case after the statutory deadline. Furthermore, the bench noted that Khan had fully disclosed his foreign income and tax credits in his original filing, which had already been scrutinized under Section 143(3). This made the reassessment a case of “mere change of opinion,” rendering it legally unjustified.
On the other hand, SRK has not publicly commented on the ruling as of March 10, 2025. Speaking of the professional front, he was last seen in Dunki, a 2023 release directed by Rajkumar Hirani. The film also features Taapsee Pannu. The actor will be next seen in Siddharth Anand’s King.
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