Shah Rukh Khan was given a clean chit from the Mumbai bench of the Income Tax Appellate Tribunal (ITAT) in a case that claimed his avoidance of tax on an interest-free loan to wife Gauri Khan in 2006. The actor had run into tax appeal case since his interest-free loan to wife Gauri Khan was earlier claimed to be a colourable device for tax avoidance.
According to the tax authorities, the loan was an ‘indirect transfer of assets’. While earlier, the Tribunal questioned as to why Gauri funded her purchases of a residential house in Delhi of Rs 1.66 crore and jewellery of Rs 70 lakh, largely out of the interest-free loan, it was later dismissed on grounds of family matter and the decision in whose name the property is to be purchased is up to them and not the Revenue.
Considering that Gauri has her own income too and that she has repaid Shah Rukh, helped the actor get a clean chit in this case.
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