We didn't send any directive on Bachchan'

Finance ministry Monday denied that the Central Board of Direct Taxes (CBDT) had issued any instructions to an assessing officer regarding recovery of tax arrears from film star Amitabh Bachchan.

Denying reports of an attempt to harass Bachchan, who is recuperating after a serious intestinal infection that required prolonged hospitalisation, the ministry in a statement Monday clarified that proceedings for recovery had commenced in accordance with the law in August 2005.

"Bachchan had over three months to make the payments in accordance with the demands for tax," the statement said.

Reacting to the media reports Sunday that orders for recovery of tax arrears from Bachchan came from Delhi, the ministry said: "It is clarified that the CBDT had not issued any instructions to the assessing officer dealing with Bachchan's case regarding recovery of tax arrears".

The assessment years in question are 2001-02 and 2002-03.

In the assessment year 2001-02, after giving effect to the order of the appellate tribunal and credit for payments already made, the demand was reduced to Rs.28 million, the official statement said.

For assessment year 2002-03, against a total demand of Rs.181.5 million, which is disputed before the CIT (Appeals), the demand was recalculated at Rs.41.2 million.

"It is further clarified that notices and letters to Bachchan were issued on Nov 17 and Nov 25 requesting the payments of the amounts. The letters were sent to Bachchan's residential address through speed post only," the statement said.

The ministry has denied having issued any letter to the film star while he was hospitalised as alleged in the media reports.

"It is understood that Bachchan was hospitalised on Nov 28. No letter was sent to him after he was hospitalised demanding payment of tax," the statement added.