Delhi High Court Halts Unjust Tax Reassessment Against NDTV Founders

The Delhi High Court has quashed 2016 income tax reassessment notices against NDTV founders Prannoy and Radhika Roy. The court deemed the proceedings arbitrary, violating constitutional rights, and fined the tax department Rs 1 lakh per person. The reassessment was for loans received in 2009-10, echoing a prior 2011 investigation.

In a landmark decision, the Delhi High Court quashed the 2016 income tax reassessment notices targeted at NDTV founders Prannoy and Radhika Roy. The court labeled the proceedings as 'arbitrary' and in violation of fundamental constitutional rights.

The bench, comprising Justices Dinesh Mehta and Vinod Kumar, criticized tax authorities for launching repetitive reassessment proceedings tied to the same transaction they previously scrutinized. The court underscored that these actions lacked jurisdiction and led to undue harassment and unpredictability.

The court directed the tax department to compensate the Roys with Rs 1 lakh each for procedural excesses. The disputed reassessment arose from loans made in 2009-10, and mirrors a prior investigation that concluded in 2013 without further action.

(With inputs from agencies.)