Bollywood’s glamour queen Aishwarya Rai Bachchan has secured a major victory in her legal battle with the Income Tax Department. The dispute began over her income tax filings, leading to a ₹4.6 crore tax controversy. Dissatisfied with the department’s assessment, Aishwarya appealed to the Income Tax Appellate Tribunal (ITAT) in Mumbai, which ruled in her favour. The tribunal dismissed the objections raised by the tax authorities against her.
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According to reports from multiple media outlets, Aishwarya filed her income tax returns for the financial year 2023–2024, declaring a total income of ₹39.33 crore, which included ₹2.14 crore earned from investments. She had also voluntarily disclosed a disallowance of ₹49.08 lakh in her filing. Following this, the Income Tax Department issued her a notice. The assessing officer (AO) recalculated her disallowance at ₹4.6 crore, which increased her assessed income to ₹43.44 crore, rejecting her explanation.
Challenging this decision, the actress appealed before the ITAT. During the hearing, the tribunal upheld Aishwarya’s claims, stating that the assessing officer had dismissed her filings without properly reviewing her investment details. The ITAT called the mismatch between total expenses and disallowance “unreasonable,” leading to a verdict in Aishwarya’s favour.
In tax terminology, “disallowance” refers to the expenses or deductions claimed by a taxpayer that are rejected by the authorities while calculating the final taxable income.
