Karan Johar arrives in his favourite black suit at Hyatt in Mumbai for Colors 4th anniversary celebrations.
According to the petition, the
assistant commissioner of income tax, circle 31, issued the notice on March 20, 2012 under section 148 of the Income Tax Act (issue of notice where income has escaped assessment) to reopen the film producer’s assessment for the year 2006-07.
“I have reason to believe that income of Rs. 2 crore plus has escaped assessment,” the notice said. Johar had declared an income of Rs. 14.73 crore for that financial year, which included his earnings from the film.
However, the assistant commissioner said his investigation found the film reported earnings of Rs. 70.1 crore, while the total cost of production was Rs. 57.44 crore. He added that Johar did not furnish the complete details of his expenditure on the film.
Johar has sought to squash the notice and the actions taken by the I-T department on the order, saying the assistant commissioner had no reason to believe he had withheld information and hence the notice itself was illegal.
A division bench of justice Dhananjay Chandrachud and justice Amjad Sayed will hear the petition on March 6.