NDTV gets partial relief from Delhi HC on I-T case

New Delhi Television Ltd (NDTV) informed the BSE that it has got partial relief on a case filed by the Income Tax Department. The I-T department had earlier appealed in the Delhi HC against an Income Tax Appellate Tribunal (ITAT) order giving clean chit to the company on certain expenditures made during the assessment year (AY) 2006-07.

"The Hon’ble High Court at Delhi yesterday dismissed the appeals filed by the Income Tax Department against the order of the Hon’ble ITAT, which had ruled in favour of the Company against the order of the I-T Department for Assessment Year 2006-07, disallowing expenditure towards employee stock options and software”, NDTV informed the BSE on Wednesday. The I-T department had disallowed expenditure aggregating in excess of Rs 50 crore incurred by the media company during AY2006-07 and AY2010-11.

 

While, the Delhi HC has dismissed the department’s appeal for the particular year, cases involving expenditures made in the following four assessment years are subjudice under the ITAT currently. 

In the recent past, the I-T department had issued at least two notices to NDTV, raising tax demands and disallowing transactions which took place during 2007-08. In April this year, the department had disallowed a $20-million (Rs 135-crore at current exchange rate) investment by Velocity Interactive Group in NDTV in 2007. Calling the investment a 'sham transaction', the department had issued an order to the media company and raised a tax demand of Rs 47.27 crore for AY2007-08. It had issued a similar order to the company regarding an investment made by National Broadcasting Company Universal Inc, US, which had invested $150 million (Rs 1,000 crore) in 2008 in NDTV Networks Plc in exchange of 26 per cent stake.