Rs 17.74 cr paid to Bachchans: I-T dept

The Bombay high court has admitted an appeal filed by the income tax (I-T) authorities challenging an order of Income Tax Appellate Tribunal, which had held that Rs 17.74 crore paid by Amitabh Bachchan Corporation Ltd (ABCL) to the actor and his wife Jaya in 1995 for their services was revenue expenditure and hence not taxable. According to the appeal filed by the I-T commissioner, the amount paid to the actors was a capital expenditure and hence taxable. The court would now have to decide whether the money paid to the superstar and his wife was capital or revenue expenditure. The matter would be heard in due course. ABCL had filed returns in 1995 showing a loss of Rs 17.74 crore on the ground that the amount paid to the actors was an expense following an agreement entered into by the company with Bachchans.