In a major setback to the NDTV founders after the SEBI order, the Income Tax Appellate Tribunal (ITAT), Delhi bench has upheld the penalty of Rs. 91 crores levied by the income tax department alleging tax evasion on Prannoy Roy and his wife Radhika Roy.
The Tribunal the Income Tax finding that during 2009-2011, the husband and wife earned huge income by the illegal trade of NDTV’s shares.
The return filed by the assessees were revised on March 16, 2011 stating the same taxable income, but claiming carry forward of long-term capital loss of RS. 3,54,000,000, which was not claimed in the original return of income.
The department had alleged that the NDTV’s promoters committed tax evasion of Rs.116 cr by hushing up their illegal income earned through dubious ways like stock exchange rigging of NDTV’s shares.
Prannoy and Radhika Roy, Founders of NDTV, are facing a double whammy for a loan agreement with Viswapradhan Commercial Pvt Ltd (VCPL). A few days ago, the SEBI stayed an order passed by the Securities and Exchange Board of India (Sebi) barring New Delhi Television (NDTV) promoters Prannoy Roy and Radhika Roy from holding managerial positions at the news television network.
Before the Tribunal, the assessees contended that they could not benefit from transaction as it was within promoter group was rejected by ITAT. The tribunal said, “the assessee entered into complex agreements with the lenders to realise the sale consideration in guise of loans from lenders.”
The Tribunal relied on SEBI’s 2018 order saying, “The takeover exercise has been conveniently couched as a loan agreement with the predominant intention of VPCL to acquire control over NDTV without contemplating any repayment of the loan.”
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