A Dubai-villa gifted to Bollywood star Shahrukh Khan was a topic of controversy among India’s income-tax appellate tribunal (ITAT) department. The villa in question was assumed to be gifted with the intention of evading income tax.
However, a recent report in the Times of India, has revealed that ITAT had dismissed such assumptions. It also determined that the villa’s value cannot be treated as the actor’s taxable income.
Dubai-based Nakheel PJSC gifted the villa to Khan under a formal gift deed in 2007. This was only after the actor had obtained an approval from the Reserve Bank of India.
According to the report, the lavish gesture was “seen as remuneration to Khan for utilizing his brand image and in lieu of his stage performance at the company’s annual day event. In light of this, the IT authorities sought to tax the value of the villa as income in Shahrukh Khan’s hands.”
In a time where Khan appealed before the ITAT regarding thhe doubts, he said that he had attended Nakheel PJSC’s open day, however he did not perform on stage.