Bollywood Hungama

Bollywood Entertainment at its best

Last Updated 04.07.2020 | 9:37 PM IST



Karan Johar’s Dharma Productions EXEMPTED from tax amounting to Rs 7 cr

Bollywood News

Karan Johar’s Dharma Productions are free from the legal trouble as the Income Tax department has exempted the company from the tax amounting to Rs 7 crore. Karan Johar’s production house was embroiled in an ongoing legal battle with the IT department because of some discrepancies in their records amounting to Rs 7 crores. The production house took the case to High Court where the division bench of Justice Akil Kureshi and Sarang Kotwal dismissed the appeal by the IT and granted relief to Dharma.

For the uninitiated, the said cases were filed looking at the records of Kaal and Dostana movies which released during 2005-2006 and 2007-2008 financial year. Karan Johar's production house claimed to have spent Rs 2.67 crore as expenses for positive prints and advertisement for Kaal and Rs 4.46 crore was claimed as advertisement expenses for Dostana. IT deemed this as illegal because the expenses came up only after the movie was granted the U/A certificate. HC dismissed this on the grounds that though the said expenses could not be deemed as ‘cost of production’ there is another section in IT which allowed to file the said expenses in the section, ‘business expenses’.

Karan is gearing up for Kalank starring Alia Bhatt, Varun Dhawan, Madhu Dixit, Sanjay Dutt, Aditya Roy Kapur and Sonkashi Sinha. Next off, he has Takht starring Alia Bhatt, Ranveer Singh, Kareena Kapoor Khan, Janhvi Kapoor and Bhumi Pednekar.

Also Read: WOAH! Shah Rukh Khan and Karan Johar to team up once again?


Catch us for latest Bollywood News, New Bollywood Movies update, Box office collection, New Movies Release , Bollywood News Hindi, Entertainment News, Bollywood News Today & upcoming movies 2020 and stay updated with latest hindi movies only on Bollywood Hungama.

Rate this article
Make favorite
Copyright © 2020 Hungama Digital Media Entertainment Pvt. Ltd. All Rights Reserved.

Forgot Password

Please provide your registered email address or username
  • OR

Write A Review

  • Click to rate on scale of 1-5
  • 5000 characters remaining

New notification