Benami Trouble Continues For Shah Rukh Khan: IT Department Challenges Order Providing Relief To Bollywood Actor

The Income Tax (IT) department has challenged an order providing relief to Bollywood actor Shah Rukh Khan in a benami property matter, Moneycontrol has reported.

The adjudicating authority had provided relief to Khan in the matter by dismissing the IT department’s case which contends that it has sufficient information to prove that the transaction is indeed benami.

The IT department cites a provision which says, “The law clears states that if somebody buys a property but not from their own capital, it falls under the Benami Property Act”.

It thus argues that the above stipulation was ignored by the adjudicating authority which reportedly misinterpreted the definition of a benami property.

Under this case it has been alleged that 87 bungalows in Alibaug including one owned by Khan were violating Coastal Regulatory Zone (CRZ) regulations.

It has been alleged that Khan purchased the land for agricultural purposes but constructed a farmhouse instead. This house worth Rs 15 crore was attached by the IT department in 2008.

The department had alleged that the firm owning the farmhouse named Deja Vu Farms was a benamidar and that the actor who owns its shares was a beneficiary under the Prohibition of Benami Property Transaction Act.