Priyanka Chopra has been hit by a spate of tax demands over a four-year period, starting with orders to pay up on a luxury watch and a luxury sedan which she claimed were gifted to her. The Income-tax Appellate Tribunal (ITAT) shot down Chopra’s explanation that a LVMH-TAG watch worth Rs 40 lakh was a gift to her from the company selling it and not part of her professional income. A similar reasoning by her regarding a Toyota Prius car, valued at Rs 27 lakh, has also been refuted by the ITAT.
The value of both items was treated as taxable perquisites in the hands of Chopra, under section 28(iv) of the Income-tax (I-T) Act. These are just two of the issues decided by ITAT in a series of orders, passed on January 16 this year, covering four years from the financial year 2006-07 onwards.
Some issues, such as addition to her taxable income for notional rent from her penthouse or a gift of jewellery worth Rs 17.06 lakh from the production house, Red Chillies Entertainment, have been remitted back to the I-T officials for a fresh relook, as the ITAT agreed that the additions were not based on any incriminating material seized during the search operations.
