Archive · 8 Nov 2025
Aishwarya Rai Bachchan Wins ₹4 Crore Tax Dispute Against Income-Tax Department
Imagine you earned some money and told the tax office how much you made and any money that was already free from taxes.
The tax office thought you should pay extra taxes because they didn't think your explanation was good enough, increasing your tax bill.
You disagreed and took it to a special court for tax problems.
The court agreed with you and said the tax office didn't properly look at your explanation or the numbers.
They decided you didn't owe the extra tax the tax office wanted.
This means you won the case and saved about ₹4 crore in taxes.
The court also said the tax office made a mistake by not showing why your original numbers weren't okay before deciding you owed more.
Aishwarya Rai Bachchan won a tax dispute worth ₹4 crore against the Income-Tax Department at the ITAT Mumbai.
The dispute concerned the disallowance of expenses related to exempt income under Section 14A for AY22-23.
The actor had declared a total income of ₹39.33 crore, including ₹2.14 crore in exempt income, and a voluntary disallowance of ₹49.08 lakh.
The Income-Tax Department increased her assessed income by disallowing ₹4.60 crore, which was later reduced by the ITAT.
The ITAT ruled that the tax assessing officer had not adequately justified the disallowance and failed to consider the facts and the disproportionate nature of the disallowance.
- Who
- Bollywood actor Aishwarya Rai Bachchan and the Income-Tax Department
- What
- A dispute over the calculation of disallowance of expenses related to exempt income, resulting in a ₹4 crore tax win for the actor.
- When
- The ITAT Mumbai ruled on October 31, 2023.
- Where
- Mumbai, India
- Why
- The ITAT ruled that the Income-Tax Department failed to provide adequate reasons for rejecting the original computation and did not properly consider the facts of the case, particularly the disproportion between total expenses and the disallowance.
Aishwarya Rai Bachchan's Side
Income-Tax Department's Side
Disallowance Calculation
Aishwarya Rai Bachchan's Side
Argued that the assessing officer (AO) dismissed her detailed reply and did not properly consider her response. Claimed total expenses were ₹2.48 crore, significantly lower than the AO's disallowance.
Income-Tax Department's Side
Asserted that the AO correctly invoked Section 14A read with Rule 8D and documented their satisfaction with the disallowance calculation of ₹4.60 crore.
Consideration of Facts
Aishwarya Rai Bachchan's Side
Stated that her clarifications were rejected, and the disallowance was disproportionate to her total expenses and actual income generated from investments.
Income-Tax Department's Side
Maintained that the AO followed proper procedure by invoking Section 14A and Rule 8D.
- Disputed Amount
- ₹4 crore
- Actor
- Aishwarya Rai Bachchan
- Tribunal
- Income Tax Appellate Tribunal (ITAT) Mumbai
- Assessment Year
- AY22-23 (FY23-24)
- Declared Income
- ₹39.33 crore
- Exempt Income
- ₹2.14 crore
- Voluntary Disallowance
- ₹49.08 lakh
- IT Department's Disallowance
- ₹4.60 crore