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HomeNewsNational NewsNDTV gets relief from Supreme Court in tax case
Saturday, 04 April 2020 12:19

NDTV gets relief from Supreme Court in tax case

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The leading news group New Delhi Television (NDTV) has been given some relief in tax assessment case by the Supreme Court, though the government has sent a fresh notice to the media company in the same regard.

On 3 April, the SC trashed the notice of Income Tax Department seeking to re-assess the income of NDTV during a financial year 2007-2008. The media company is accused of round-tripping over Rs 400 crore unaccounted money through its UK-based subsidiary for its non-news business.

NDTV is promoted by Radhika and Prannoy Roy. 

The company said: “The Supreme Court has today ruled in favour of NDTV in a tax case which baselessly accused the company of money-laundering while raising funds abroad in 2007 for its non-news businesses.”

As reported, in March 2015, the I-T department sought re-assessment of the media company alleging that it has concealed facts and laundered money, which the court refused to allow to do the same.

As the case is related to foreign assets, the court may have refused the tax department’s reassessment request but has allowed it to issue a new notice by invoking the limitation of 16-year period.

The revenue department perhaps seems to believe the apex court has not given a breather to the media company; rather it has upheld the government’s view by giving it the freedom to assess the same through another provision relating to foreign assets.

Reassessment of a case means re-opening of an assessment which was already done earlier on fulfilment of certain conditions. Under this, the overall income of the company is rechecked by including the source of income, which it has escaped earlier.

The news broadcaster case pertains to over Rs 400 crore introduced in 2008-09 assessment year in the books of a UK-based subsidiary of the media company. The tax department is in the belief that this amount is nothing but the company’s own income, which they failed to disclose it during the assessment.

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