12/11/2025
📢 Tax Tribunal Rules in Favour of Aishwarya Rai Bachchan – ₹4 Crore Disallowance Deleted!
Bollywood actress Aishwarya Rai Bachchan has won a major relief from the Income Tax Appellate Tribunal (ITAT), Mumbai, in a ₹4 crore dispute related to Section 14A disallowance.
💡 What Happened:
Aishwarya had declared income of ₹39.33 crore for AY 2022-23.
The Assessing Officer added ₹4.11 crore, claiming extra “expenses” related to her tax-free investments.
But Aishwarya had already disallowed ₹49 lakh voluntarily in her return.
⚖️ Tribunal’s Findings:
The AO failed to record the required “satisfaction” before applying Rule 8D.
The computation of ₹4.6 crore disallowance was illogical — it even exceeded her total yearly expenses!
Only investments that actually generated exempt income can be considered for Section 14A.
✅ Verdict:
ITAT Mumbai ruled in her favour, deleting the ₹4 crore addition.
Her voluntary disallowance was accepted as reasonable and lawful.
📘 Key Lesson:
Always maintain proper records and make a reasonable voluntary disallowance under Section 14A.
If the AO applies Rule 8D without valid reasons, you have a strong case for appeal.
