The IT Department had disputed Khan’s declared income of ₹83.42 crore and rejected his claims for foreign tax credit on taxes paid in the UK. The department later recalculated his tax liability at ₹84.17 crore, initiating a reassessment over four years after the initial filing.
However, the ITAT ruled that the reassessment was not legally justified, stating that the tax authorities failed to provide any fresh, tangible material to warrant reopening the case beyond the statutory four-year period. It noted that the matter had already been scrutinized during the initial assessment, making the reassessment invalid.
“The assessing officer failed to demonstrate any new material justifying the reopening of the case,” ITAT said in its judgment. The tribunal further stated that revisiting an already examined case without new evidence was “bad in law.”
With this ruling, Shah Rukh Khan has successfully defended his tax claims, preventing any additional liabilities. Legal experts believe this verdict strengthens the precedent that reassessment proceedings must be backed by substantial new evidence rather than routine reviews.
The victory comes as a relief to Khan, who continues to be one of Bollywood’s biggest stars and a global icon. Meanwhile, the IT Department has yet to comment on whether it will challenge the tribunal’s decision.
