The income tax department has moved the Madras high court alleging that 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.
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 2011-12 in connection with an agreement made with UK-based Libra Mobiles.
Reportedly the counsel of the Income Tax department said that the income for work has to be received in Rahman’s individual account and it is taxable. After the deduction of income tax, it can be moved to the charitable trust. 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.