Lotus Investments Pvt Ltd, a company owned by mega star Amitabh Bachchan and his brother Ajitabh, today moved the Bombay high court challenging a reassessment order passed by Income Tax authorities early this year seeking recovery of Rs 2.53 crore.

Actor Jaya Bachchan is one of the directors of the company while the Bachchan brothers own the entity, IT department's lawyer Benny Chatterjee told reporters.

According to Chatterjee, IT department wanted to reassess the tax paid by the company since 1994, alleging the company was not eligible for exemption of tax on the interest it has paid on loan which it took from Vysya Bank (now called ING Vysya Bank) in 1994.

According to the Income Tax department, the money was supposed to be used for business purposes but it was invested in shares of other companies.

Hence, exemption granted for the interest paid on the loan taken for the expenses incurred by the company itself would not be applicable, the department stated.

The company had also claimed Rs 14 lakh depreciation which it should not have done so, IT counsel claimed.

Arguments are being submitted by both sides and Justice H L Gokhale and Justice J P Deodhar are expected to pass an order next week.

--- PTI