New Delhi: On January 26, 1963, even as Lata Mangeshkar reduced then PM Jawaharlal Nehru to tears with her rendition of ‘Ae mere watan ke logon’ — in the aftermath of 1962 Indo-China war — the income-tax department was preparing to swoop down on her. The annals of Bombay High Court bear testimony to Lata’s tryst with the Income Tax department, which began right after the country gained independence in 1947.

Fortunately, she had the invaluable assistance of legal eagle Nani Palkhivala to ensure that the tax department was stopped in its tracks at the level of the constitutional court. HC records also show how the court’s respect grew for the melody queen, in keeping with her rising stature, over the years.

The references to her in the judgments changed from “a singer by profession” in 1958 to “a well-known playback singer” to an “acknowledged playback singer” in the 1970s. Just days after the Republic Day function at New Delhi’s National Stadium, the I-T department questioned Lata’s returns for assessment years 1962-63, 1963-64 and 1964-65, focusing on receipts of Rs 1,43,650, Rs 1,38,251, and Rs 1,19,850, respectively, which were principally based on diary entries maintained by her in respect of receipts from professional work as a playback singer.

An I-T officer had come across a ledger maintained by Vasu Films in Madras (now Chennai) containing certain entries and, based on them, taken the view that Lata had concealed her real income.

After going through the arguments on behalf of the I-T department and Lata, the HC on June 20, 1973, said, “Since we are upholding the tribunal’s view on the additions, no question of levying penalty can arise. ”

In another proceeding, the I-T department had questioned how she organised the money to purchase a flat in ‘Prabhu Kunj’ at Peddar Road for Rs 45,000 on August 23, 1960. Lata had another flat at Walkeshwar, which was sold on October 12, 1960.

Her run-ins with the I-T department continued till early 1990s, as is evident from a Bombay HC judgment dated December 30, 1991. The I-T department had appealed against a decision by the commissioner of income tax (appellate) allowing relief to Lata to the tune of Rs 3,91,570 earned from concerts in foreign countries.

The HC dismissed the I-T department appeal and said, “We agree with the CIT(A) that there was no justification for treating any portion of the expenditure incurring in India as relatable to the receipts abroad....”