Delhi High Court Quashes Unjust Income Tax Notices Against NDTV Founders

The Delhi High Court annulled 2016 income tax notices issued to NDTV founders Prannoy Roy and Radhika Roy. The court deemed the reassessment proceedings, initiated twice on similar grounds, as arbitrary and unlawful. Rs 1 lakh was awarded as token cost to each founder, condemning the harassment faced.

In a significant ruling, the Delhi High Court on Monday nullified 2016 income tax reassessment notices served to Prannoy Roy and Radhika Roy, founders of NDTV. The court ordered the income tax department to pay Rs 1 lakh to each as a token penalty, highlighting the unwarranted nature of the proceedings.

A bench comprising Justices Dinesh Mehta and Vinod Kumar criticized the authorities for subjecting the Roys to duplication of reassessment proceedings over identical issues. The court ruled such actions as arbitrary, contrary to legal provisions, and a violation of fundamental principles of the adjudicatory process.

The 2016 notices were based on allegations related to interest-free loans from RRPR Holding Private Limited, NDTV's promoter entity. While initial assessments were completed in 2013, fresh notices were unjustifiably issued in 2016 without new evidence, leading the court to protect the Roys' constitutional rights and halt the proceedings.

(With inputs from agencies.)