Aishwarya Rai Bachchan has secured a significant legal victory in her tax dispute, after the Income Tax Appellate Tribunal (ITAT) Mumbai ruled in her favour regarding a Rs 4 crore disallowance. The issue arose when the income tax department challenged her calculation of expenses related to tax-free income for Assessment Year 2022-23. Advertisement

The tribunal's decision to dismiss the revenue's appeal and delete the disallowance reinforces the need for tax authorities to follow statutory procedures in such cases.

The dispute centred on Section 14A of the Income-tax Act, which precludes the deduction of expenses incurred to earn exempt income, the Economic Times reported. Rai Bachchan declared a total income of Rs 39.33 crore for the year, including investments generating Rs 2.14 crore

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