Filmmer Karan Johar who was fighting a legal battle which involved his production house Dharma Productions can can finally take a breath of relief ad High Court has decided to favour the director in the case. The HC finally dismissed an appeal filed by the Income Tax department which allowed the production house to claim the Rs 7 crore as an expense.

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Filmmaker  had won the case but had the case gone in favour of the income tax department, Dharma would have had to pay the amount.  Talking about the cases, the two date back to 2005-2006 - Kaal and 2008-2009 - Dostana. Kjo’s production house climbed 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.

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According to report, A division bench of Justice Akil Kureshi and Sarang Kotwal, have finally dismissed the appeals filed by the department. The bench observed that even if the department was right that the expenses could not be claimed as the cost of production, another section of the Income Tax allowed those expenses to be claimed as business expenses. Therefore, the cumulative effect was that the production house could have claimed the amounts as expenses and need not to pay tax.

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On the workfront, Karan Johar is busy is producing Student Of The Year starring Ananya Panday, Tara Sutaria and Tiger Shroff. Apart from SOTY 2, Karan Johar is also directing Takht.