Former Miss Universe and Bollywood actress Sushmita Sen has gotten a best-ever Birdthay gift as the Income Tax Appella Tribunal (ITAT) confirmed saying that the actress is not liable to pay tax on a compensation she received from Coca-Cola in a sexual harassment case.
It is to be noted that, Sushmita Sen is celebrating her 43rd Birthday on November 19. She was born on November 19, 1975. Sen was the first Indian woman to win Miss Universe Competition.
According to the DNA report, the compensation she received from Coca-Cola did not fall under her income category but was rather a “capital receipt”. Hence, it is not taxable. The body also set aside the penalty of Rs 35 lakh imposed on her for concealment of income — she had not shown Rs 95 lakh as part of her income to Income Tax.
The Bollywood actress received Rs 1.45 crore as part of the settlement from Coca-Cola India. She offered Rs 50 lakh for income tax, which is the sum she was entitled to get in case of premature termination of the contract. She maintained that the remaining Rs 95 lakh was a compensation and hence, not taxable.
“The balance amount of Rs.95 Lacs is stated to be received for loss of reputation etc. Under the circumstance,s as discussed by us in the preceding paragraphs and therefore, being capital in nature, claimed to be not taxable. The factual matrix leads us to believe so in view of the fact that the contract did not envisage any additional payment over and above the amount of Rs.150 Lacs to the assessee,” Tribual told DNA.
Adding that, “The perusal of documents leads us to believe that the said compensation did not accrue/arise out of exercise of profession by the assessee and could not be construed to be the income of the assessee or profits and gains of profession within the meaning of Section 2(24) and Section 28 of the Income Tax Act, 1961. The compensation could not be termed as any benefit, perquisites arising to the assessee out of the exercise of profession,” the Tribunal said.
Also read: Lux Golden Rose Awards 2018: Aishwarya, SRK and others who bagged the awards