Like a remix of an previous track that comes again once more, an revenue tax downside which was thought to have been closed has cropped up once more for music composer A.R. Rahman. However solely factor is that it could sound as a jarring be aware for the composer. The Madras Excessive Court docket has ordered discover to Rahman on an enchantment made by the Principal Commissioner of Earnings Tax in opposition to the choice of the Earnings Tax Appellate Tribunal (ITAT) that went in favour of the music composer.
The matter pertains to the evaluation yr 2011-12 and the music composer declared revenue of Rs 15.98 crore. Rahman had declared in his return a complete revenue of about Rs 15.98 crore for evaluation yr 2011-12 and the identical was accepted by the Earnings Tax Division in 2014. Nonetheless, the evaluation was reopened stating that about Rs 54 lakh and Rs 3.47 crore acquired from Photon Kathas Manufacturing and the UK based mostly Lebara Cellular weren’t assessed.
Rahman had clarified that Rs 3.47 crore was paid by Lebara Cellular to A.R. Rahman Basis (ARRF) and the entity was taxed individually. As Lebara Cellular contributed to the Basis, Rahman agreed to compose caller tunes for the corporate for 3 years.
The revenue tax division accepted Rahman’s clarification and closed the reassessment in 2016. However in 2018, the Principal Commissioner requested Rahman as to why the 2016 reassessment order shouldn’t be put aside because the cost of Rs 3.47 crore was for music composer’s skilled service.
The composer approached the ITAT which dominated in favour of Rahman saying the stated cash was assessed within the fingers of the Basis. The Basis had additionally received House Ministry’s approval for the contribution made by Lebara Cellular.
The revenue tax division has gone to the Excessive Court docket in opposition to the ITAT order stating it could not have objected had the composer paid tax on the quantity and transferred the sum to the Basis. The division contended that the cash paid by the overseas firm is for his skilled service whereas the Basis enjoys tax exemptions.