Delhi HC Quashes Income Tax Notices against NDTV Founders, Slaps ₹2 Lakh Costs on Department
While noting that no amount of costs can truly compensate for the harassment caused by such proceedings, the Court imposed a token cost of ₹1 lakh each payable to Dr. Roy and Ms. Roy.
The Delhi High Court has quashed the income tax reassessment notices issued to NDTV founders Dr. Prannoy Roy and Ms. Radhika Roy which was issued in March 2016. The notices were issued in relation to transactions involving interest-free loans advanced to RRPR Holding Pvt. Ltd., the promoter entity of NDTV, and the Court also directed that all consequential proceedings arising from...
The Delhi High Court has quashed the income tax reassessment notices issued to NDTV founders Dr. Prannoy Roy and Ms. Radhika Roy which was issued in March 2016.
The notices were issued in relation to transactions involving interest-free loans advanced to RRPR Holding Pvt. Ltd., the promoter entity of NDTV, and the Court also directed that all consequential proceedings arising from the notices would stand quashed.
A Division Bench of Justice Dinesh Mehta and Justice Vinok Kumar further imposed costs of ₹2 lakh on the Income Tax Department.
While noting that no amount of costs can truly compensate for the harassment caused by such proceedings, the Court imposed a token cost of ₹1 lakh each payable to Dr. Roy and Ms. Roy.
The ITAT record showed that reassessment of AY 2009-10 and AY 2010-11 was triggered based on an investigation report forwarded by the Deputy Director of Income Tax (Investigation). Cross appeals were entertained by the appellate tribunal.
The core issue of the matter is whether shifting shares into a joint demat account could alter the period of holding, leading to STCG instead of LTCG, by applying FIFO method under section 45(2A) read with CBDT Circular 768.
Further, the case also involved additions under Income from House Property, where annual letting value/fair rent was estimated for properties including Greater Kailash (Delhi) and Sinola, Dehradun, using enquiry/portal-based benchmarks.
The tribunal granted partial relief to both Revenue and assessees. The NDTv founders did not get a complete favourable outcome from the tribunal.
When it came before the high court, the income tax notices were quashed against the NDTV founders. It also directed that all consequential proceedings initiated pursuant to the notices shall also stand quashed. Therefore the assessee gets a complete relief.
Earlier too, the Delhi High Court has quashed an income tax order issued against one of the founders Dr. Prannoy Roy.
Also Read:Delhi HC Grants Relief to NDTV Founders, ITAT Orders in Prannoy Roy’s Tax Case Quashed [Read Order]
The detailed judgment of the High Court awaited.
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