Priyanka Chopra loses Income tax battle, admitted 50 Lakh Cash payments: Court

The long arm of the law has reached the stars when the film actress Priyanka Chopra got a blow from the Income Tax Appellate Tribunal (ITAT) after she loses the IT battle in the tribunal for Rs.50 lakh cash payment case. Priyanka Chopra is a well-known celebrity and is having a dream run in her career after working with many world-class Hollywood actors.

This shows that law is equal for all and this case further boost the Indian legal system and the faith that everyone is equal in the eyes of law. Let us understand more about the case.

Brief facts about the case

The Income-tax case pertains to the year 2007-08. On 24.01.2011, the income tax department raids the place of Priyanka Chopra. During the search operation, various incriminating documents were found which shows that the actress has purchased a studio for Rs.3.5 crore and has paid Rs.50 lakh in cash.

The income tax authorities added the Rs.50 lakh cash as the undisclosed income of the famous actress. This fact was even confronted with the mother of Priyanka Chopra who agrees and stated

“Yes, I admit that based on the above-seized papers, I under-disclosed the income which includes the cash payment made to purchase the studio of Rs.50 lakh. I also state that this income has accrued to me and Priyanka Chopra through various events, shows and sale of flats.”

Undisclosed income confirmed by Priyanka Chopra

After this, the income tax department prepared a detailed statement and confronted the actress who also agrees and stated

“I have gone through the statement. As per the statement, my mother has admitted that she has been receiving Cash Payments on my behalf for me making the appearance at Marriage Functions and also at minor appearances such as cutting of ribbon etc.

Further, my mother has admitted that total Cash Payment at Rs.6.O5 crores has been made for purchase at various properties and various renovation works. I state that the same is correct”

The turning point - Stand withdrawn by Priyanka Chopra’s Mother

When everything was going the department way, suddenly on 13.04.2011 via letter, Priyanka Chopra mother retracted the above-said statement. However, the income tax department was in no mood to spare the actress and made the additions of Rs.50 lakh as the undisclosed income of the assessee.

Appeal to Commissioner (Appeals) by Priyanka Chopra

After getting a demand notice from the Income Tax officer, the actress Priyanka Chopra filed the appeal against the order with the Commissioner of Income-tax (appeals).

The filing of appeal soon proved to be the good decision and the Commissioner set aside the order of the income tax department stating that there is no documentary evidence to prove that income has been accrued to the actress.

Hence, the commissioner set aside the order of Income tax department.

Appeal to ITAT by the Tax department

After getting a rejection from the Commissioner (Appeals), the tax department filed the appeal with the higher authority i.e. ITAT against the order of the Commissioner (appeals).

ITAT states that since Madhu Chopra has separately accepted the additions, hence, it cannot be said that this addition is not based upon any incriminating material found or searched. Furthermore, the so-called retraction is by the mother of the assessee and the Assessing Officer is correct in finding that there is no retraction whatsoever by the assessee.

Hence, in the end, the addition made by the assessing officer is perfectly correct and there was an undisclosed income of Rs.50 lakh. For more information, please email us at info@hubco.in.