Actor Shah Rukh Khan won a case against the Income Tax Department. The Income Tax Appellate Tribunal (ITAT) sided with him, cancelled the tax reassessment for 2011-12. This issue was about taxes from his film RA.One, released in 2011. Khan had declared an income of about Rs 83.42 crore, which included earnings from RA.One that were taxed in the UK. The tax office refused to give him credit for taxes he already paid in the UK, raising his taxable income to about Rs 84.17 crore. They then started a reassessment after the legal time limit had passed. The problem was that 70% of his payment went through Winford Productions in the UK because 70% of the movie was filmed there. Tax officials claimed this caused India to lose money and rejected his claim for foreign tax credit.

The ITAT in Mumbai overturned the reassessment in Khan’s favor, stating that:

– The time limit had expired and there were no new findings.
– No new details were presented.
– The tax officer simply changed their mind, which is not a valid reason for reassessment.

The fight over his UK earnings and tax relief is over. Tax officials generally can’t review tax returns after 4 years unless income was hidden. Simply changing their minds isn’t a good enough reason to re-examine. If tax has already been paid in another country and reported correctly, India can’t tax it again. Foreign Tax Credit claims are protected by law, ensuring fair taxation worldwide. Taxpayers should keep records of their overseas income, tax payments, and tax treaty rules to support their claims. Submitting Form 67 by the deadline is essential to get Foreign Tax Credit benefits.