In a huge relief for Karan Johar and his production house Dharma Productions, the Bombay High Court has dismissed an appeal filed by the Income Tax department over 'cost of production' of two films, Kaal and Dostana. For the unversed, Karan's banner had claimed Rs 2.67 crore as expenses for 'positive prints and advertisement' for Kaal in 2005-2006 and Rs 4.46 crore as 'advertisement expenses' for Dostana in 2008-2009. However, the IT department was of the view that the expenses, mounted by Dharma under the head "cost of production" were not allowed.
Now in a recent development, a report in a daily stated that a division bench of Justice Akil Kureshi and Sarang Kotwal, have finally dismissed the appeals filed by IT department, maintaining that another section of the Income Tax allows those expenses to be claimed as business expenses, if not 'cost of production'. Hence, Karan Johar and Dharma can claim over Rs 7 crore amount and need not to pay tax on the same. If the case would not have been in KJo's favour, he would have had to pay tax on that money.
Meanwhile, on the work front, Karan's next production Student Of The Year starring Ananya Panday, Tara Sutaria and Tiger Shroff, is set to release this year. Apart from that, he is all set to direct Takht, which has an ensemble cast including Kareena Kapoor Khan, Alia Bhatt, Anil Kapoor, Ranveer Singh, Janhvi Kapoor and Vicky Kaushal.
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