The income tax department has moved the Madras high court alleging that Oscar-winning music composer A R Rahman has routed his income of over Rs 3 crore through A R Rahman Foundation, a charitable trust managed by him, to evade tax. Admitting the appeal moved by the department, a division bench of Justice TS Sivagnanam and Justice V Bhavani Subbaroyan ordered notice to the music composer.

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Income tax dept moves Madras high court against A R Rahman
Sureshkumar | Sep 11, 2020, 11:34 IST
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A R Rahman
CHENNAI: The income tax department has moved the Madras high court alleging that Oscar-winning music composer A R Rahman has routed his income of over Rs 3 crore through A R Rahman Foundation, a charitable trust managed by him, to evade tax.
Admitting the appeal moved by the department, a division bench of Justice TS Sivagnanam and Justice V Bhavani Subbaroyan ordered notice to the music composer.
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According to senior standing counsel for the income tax department T R Senthil Kumar, Rahman received an income to the tune of Rs 3.47 crore in the assessment year 201-12 in connection with an agreement made with UK -based Libra Mobiles.
The contract was to compose exclusive ringtones for the company and the term of the contract was for three years. As per the contract, Rahman had instructed the company to pay his remuneration directly to the foundation managed by him, the department said.
“The income, which is taxable, must be received by Rahman. After due deduction of tax, it can be transferred to the trust. But the same cannot be routed through the trust as income to the charitable trust is exempted under the Income Tax Act,” the counsel said.
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As the proceeding initiated by the I-T has been set aside by the income tax tribunal, the department has moved the present appeal before the high court.

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