NDTV founders Prannoy Roy and Radhika Roy get relief as the Division Bench of Justices Dinesh Mehta and Vinok Kumar Delhi High Court has quashed the income tax reassessment notices issued against them
in March 2016 over certain interest-free loans to NDTV promoter RRPR Holding. This is according to Bar and Bench. The court also told the tax department to pay a token cost of Rs 1 lakh to the Roys.
However, a detailed judgment explaining the court’s reasoning is awaited.
Reportedly, the Roys had made an approach to the Delhi High Court in November 2017, arguing that the reassessment amounted to a second reopening of the same assessment year not allowed under law.
They went on to point out that the tax department had already reopened their assessment once in July 2011 after examining the same issues in detail. That exercise ended with a reassessment order in March 2013. Amidst reopening the matter again, they argued, it was merely a “change of opinion”, held to be illegal.
The petitioners also rejected the tax department’s claim that the earlier reassessment was limited in scope.
Last year, the Delhi High Court had told the CBI that it would be “futile” to continue with the Lookout Circulars issued against Prannoy Roy and Radhika Roy.
The court was then hearing a petition by the Roys challenging the LOCs issued following CBI cases against them in 2017 and 2019. While 2017 case was closed citing insufficient evidence, however, the 2019 case pertained to alleged money laundering with the CBI accusing the Roys and others of “sham transactions” to bring “funds from abroad”. Reportedly no chargesheet was filed in that case.
News Edit KV Raman
