Chennai: The Madras High Court on Friday issued a notice to music composer AR Rahman in connection with an allegation of the Income Tax Department regarding tax evasion. The Income Tax Department has alleged that Rahman used his foundation as a medium of tax evasion, in which he is the managing trustee and deposited more than three crore rupees in it. Also Read – You don’t go to break Dawood’s house, you go to break Kangana’s house: Devendra Fadnavis
The Income Tax Department moved the High Court and challenged the decision of the Income Tax Appellate Tribunal here under which the order of the Principal Commissioner of Income Tax in Chennai was repealed. Also Read – 25 Bollywood superstars on NCB radar, list of names ready in drug case
A division bench of Justice TS Shivagananam and Justice V Bhavani Subbarayan filed the arguments of the Income Tax Department and issued notice to the musician. Also Read – Tara Sutariya in a relationship with respect Jain? Speak- No one hides beautiful things
According to Income Tax Department lawyer TR Senthil Kumar, Rehman earned an income of Rs 3.47 crore in the assessment year 2011-12 (Income Tax) in connection with an agreement with Libra Mobiles of UK.
According to the Income Tax Department’s allegation, Rahman had contracted for the company to produce a special ‘ringtone’ tune and the contract was for three years. According to the contract, Rahman instructed the company to pay this remuneration directly to the foundation under his management.
The lawyer said, “The taxable income must have been received by Rahman and after due deduction of tax, it could be transferred to the trust. But this cannot be done through a trust, as the income of a charitable trust is exempt under the Income Tax Act. “
According to the petition filed by the department, Rehman moved the Income Tax Appellate Tribunal in Chennai after receiving the income tax notice and in September 2019, the tribunal had ruled in favor of Rahman for not getting this amount taxable.
Rahman received Rs 3,47,77,200 as an artist from Libra Mobile in 2010-11, which must be taxed and was not considered by the Assessing Officer in the re-assessment order.
Also, the receipt of professional fees was not mentioned in Rahman’s income tax return for 2011-12. Instead, the taxpayer made this payment to AR. Put it in the account of Rahman Foundation. This foundation is a tax-exempt institution under the Income Tax Act.