Relief to Priyanka Chopra: ITAT deletes Income Tax Additions [Read Order]

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) on last week, deleted income tax additions against Indian actress and former Miss World Priyanka Chopra. Several additions have been made by the income tax department against the actress. Earlier, most of the demands were quashed by the first appellate authority for want of evidence.

The actress, in her wealth tax return, claimed exemption in respect of the penthouse at 9* Floor in Navkaran apartments  as an office, being used for the business purpose. However, during the course of search, it was noticed that the flat No.403 was used as office rather than 901. The Assessing Officer made an addition of Rs.14 lacs being notional rent for Penthouse at flat nos. 901 and 904 of Navkaran Building. The addition was made on the basis of a statement made by the Secretary of the actress stating that the said flat was vacant during the period.

Before the authorities, the assessee contended that the said Penthouse is used to keep the assessee’s dresses as godown, however ,the assessing officer noted that no evidence has been furnished for official use.

Remanding the matter back to the files of the Assessing Officer, the bench noted that the assessee being a professional artist is entitled to have a proper office and storage space.

Another addition had been made by the assessee on the basis of statement recorded of Shri Chand Mishra/ secretary of the appellant that he had arranged 4 wedding functions for appellant to which, appellant has charged Rs. 30 lakhs cash for each of such function, plie appellant explained that she had attended one marriage at Mahalaxmi Race Course/ Mumbai as a part of contractual agreement entered into with M/s. Cineyug Media & Entertainment Pvt Ltd for certain events.

Since there was no further evidence to prove the allegation, the first appellate authority deleted the addition.

On Revenue’s appeal, the bench said that “this addition has solely been made on the basis of a statement obtained from the secretary of the assessee. There is no corroborative material whatsoever. A mere statement by the secretary cannot be said to be a conclusive proof of undisclosed income earned. Hence, we are of the considered opinion that the ld. Commissioner of Income Tax (Appeals) has correctly accepted the assessee’s submission in this regard and deleted the addition.”