Income Tax Dept to Re-do Assessment against Actor Dulquer Salmann [Read Order]

The Chennai bench of the Income Tax Appellate Tribunal (ITAT) has recently allowed the income tax department to re-do the assessment proceedings against Karwan-actor Dulquer Salmann.

An income tax search was conducted on the residential premises of the actor under section 132 of the Income Tax Act, 1961. Based on the search, assessment proceedings were conducted against the assessee where the Assessing Officer found that out of ₹.12,83,000/- as the professional receipt, the assessee admitted ₹.8,59,360/- as income. In the absence of Profit and Loss Account and other evidence, the officer disallowed 50% of the expenses claimed by the assessee. Further after examining the balance sheet figures, the officer found that as the source for investments was not explained, therefore, the officer added ₹.2,03,35,311/- as undisclosed income of the assessee.

The revenue approached the Tribunal against the order of the CIT(A) where the authority granted relief to the actor.

The Tribunal noted that before the Settlement Commission, the assessee’s father and Mollywood actor Mammootty explained the nature of the transactions and all the investments made in the name of the actor have been reconciled with the bank statements of his father and that of the assessee.

“We have heard the rival submissions and perused the material available on record. Since the nature and source of the impugned transactions were not properly placed and explained before the A.O, we deem it fit to remit the issues back to the file of A.O for a fresh examination. The assessee shall place relevant materials in support of his contentions before the A.O. and comply with the requirements of the A.O. in accordance with the law. The A.O. is also free to conduct the appropriate enquiry as deemed fit. On due examination and after affording the effective opportunity to the assessee, the A.O. shall decide the matter on merits,” the Tribunal said.