In a major relief to Bollywood actress Sushmita Sen on her birthday, the Income Tax Appella Tribunal (ITAT) ruled out the tax liability on her from the compensation paid by a multinational soft drink company in 2004. ITAT also set aside the penalty of Rs 35 lakh imposed on her for concealment of income.
The ITAT in its judgement said that the compensation Sen got did not fall under the “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 I-T.
Sen had 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, but concealed the remaining Rs 95 lakh was a compensation paid to her by the company and hence, not taxable.
Sushmita Sen is celebrating her 43rd Birthday on November 19. She was born on November 19, 1975.