ITV

Tag: ITAT

  • NDTV tax case: Delhi HC against coercion, hearing on 21 Aug

    MUMBAI: The Delhi High Court has directed the income tax (I-T) department not to take any coercive step against New Delhi Television (NDTV) in connection with its Rs 4280 million tax demand.

    A bench of justices Pratibha M. Singh and S. Muralidhar said it was “satisfied” that there was a prima facie case in favour of NDTV, PTI reported. The court also issued notice to the I-T department seeking a reply on NDTV’s plea challenging the demand order of 26 July and a show-cause notice of the same day. The notice had been issued for failure to pay the amount in time.

    Appearing for NDTV, senior advocate Harish Salve contended that the 26 July order was based on “piecemeal assessment” and “without jurisdiction.”

    The bench, pulling up the tax authority for issuing the demand order and the notice, observed that the time given for deposit of the amount was “immediately now” which seemed to be an “over-enthusiastic step” and “on the face of it, illegal.” “How can you pass penalty order when no time has been given for payment of the amount which was determined on 26 July,” the court asked the I-T department.

    The I-T department, in its defence, contended that only a show-cause notice was issued and it was in respect of two unpaid demands for 2007-08 and the one under challenge of 2009-10.

    Representing the department, senior advocate Sanjay Jain argued that the plea was not maintainable and that NDTV could go in appeal against the order to the I-T commissioner.

    He, however, said that the penalty notice in connection with the demand for assessment year 2009-10 would not be given effect to. He also urged the bench to direct partial deposit of the demand.

    While noting the statement made on behalf of the I-T department, the court did not order partial deposit of the amount. The bench, instead, permitted the I-T department to bring up the subject on the next date of hearing on 21 August.

    According to NDTV’s plea, the 26-July order was issued after the 14-July decision of the Income Tax Appellate Tribunal (ITAT), by which it had upheld the assessing officer’s decision to add around Rs 6420 million, as unexplained money, to the channel’s income for the assessment year 2009-10. But, the ITAT had remanded back three other issues pertaining to the same AY, NDTV stated, contending that there could not be a demand order for each “truncated” issue.

    NDTV also said that the “unexplained money” of around Rs 6420 million was in fact an investment made by NBC Universal Inc. through its subsidiary Universal Studio International BV. The petition, subsequent to the ITAT order of 14 July, said the I-T department had arrived at a figure of Rs 5770 million as the income of the media house for the AY 2009-10 by taking into account losses of Rs 640 million claimed by NDTV as well as the unexplained money.

  • NDTV issues statement on tax demand of Rs 4.3 bn

    MUMBAI: NDTV has issued a statement on the immediate tax demand of Rs 4.3 billion.

    It stated on its web site: “The attempt to intimidate and paralyze NDTV has expanded to epic proportions in the last 24 hours. There are new attacks from the CBI and the Enforcement Directorate. In short, there is a three-pronged attack on NDTV by the:

    1) CBI
    2) Enforcement Directorate
    3) Income Tax Department”

    “All three agencies are attacking NDTV over one transaction in which GE, USA, made a US$ 150 million investment in NDTV – a perfectly legitimate and publicly, officially declared investment – which they are calling a “sham transaction,” it stated.

    “Especially shocking is a demand of Rs. 4.3 billion from the Income Tax Department. The Income Tax Department’s letter, (sent today — 27 July), says NDTV has to pay the amount “immediately now” (sic!). A demand for immediate payment without any notice period is unheard of and smacks of sinister motives by the IT Department,” it added.

    NDTV says:

    “The IT department has not even completed the assessment of NDTV as directed by the Income Tax Appellate Tribunal (ITAT).

    The ITAT had told the IT Department to make a fresh assessment on no less than four issues. These instructions have been flat-out ignored by the IT Department in rushing its tax demand to NDTV.

    It is unknown in law to make this sort of “partial tax demand” without completing the entire tax assessment.

    Income Tax law only recognises one assessment order – and the IT Department must complete the assessment including the four new factors raised by the ITAT.

    After the ITAT order (based on incorrect facts given by the IT Department), NDTV has, by law, 120 days to appeal. It is shocking that even before the appeal can be filed, the tax department has shown such alacrity in demanding the tax. This is the same Tax Department which dragged its feet for three years, seeking more than 20 adjournments in the ITAT.

    The new urgency reflects instructions to punish NDTV and to issue a warning to the media at large of the consequences of balanced journalism.

    In an undisguised fishing expedition, the CBI has sent NDTV a letter demanding documents from NDTV and its subsidiaries for an unspecified period – this despite NDTV having supplied more than 500 pages of documents only two weeks ago. Strangely, the CBI does not acknowledge the receipt of these documents.

    Separately, the Enforcement Directorate informed the Bombay High Court yesterday that it is investigating NDTV for violations under PMLA (Prevention of Money Laundering Act) – it has never, of course, informed NDTV of any such charge. The ED has already spent a good part of the year summoning NDTV management and questioning them repeatedly, without informing the company of what it has done wrong.

    The government is making clear the implications of fearless journalism. Despite the illegal and massive pressure, NDTV will not allow its coverage to be affected by these shameful tactics.”

    ALSO READ :

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  • Tribunal upholds tax demand, NDTV intends to challenge order

    NEW DELHI: The Income Tax Appellate Tribunal (ITAT) has upheld a tax demand raised on investments of USD 150 million by a US television network in NDTV in 2008, an order that the Indian company said has “numerous inconsistencies and contradictions”. With the tribunal’s 14 July 2017 order upholding the tax demand, penalty proceedings are likely to commence shortly.

    NDTV had assured shareholders that it would seek necessary legal advice and appeal against any adverse ITAT order. On its web site, it stated: “This is with reference to reports in certain section of the media as well as social media regarding the rejection by the Income Tax Appellate Tribunal (ITAT) of an appeal filed by the Company against the assessment order for tax demand of Rs. 450 crore for the assessment year 2009-10. The ITAT order has not yet been uploaded. Once the order is uploaded, the Company will advise shareholders of the implications thereof.”

    In a stock exchange filing, NDTV said it was surprised at ITAT dismissing the appeal it had filed against the tax demand, according to a PTI news report, which quoted the company as saying, “It is important to note foremost that the ITAT has accepted that there was no round-tripping or money laundering, as was alleged by income tax department.”

    The tax department had alleged that Rs 218.30 crore (Rs. 2183 million) was the tax that was sought to be evaded on investment of Rs 642.54 crore (Rs. 6425.4 million). It had sought a penalty of Rs 436.8 crore (Rs. 4368 million) at the rate of 200 per cent of tax evaded.

    It confirmed invocation of Sec 69A of Income tax Act (dealing with ‘unexplained money’ addition) and upheld that “transaction used principally as a devise for the distribution/ diversion of sum to the Indian entity” and that “the beneficial owner of the money is the assessee”.

    PTI quoted NDTV as saying: “Surprisingly, the ITAT has dismissed the appeal filed by the company as not being maintainable but at the same time adjudicated the appeal filed by the income tax department (ITD) against the same assessment order. It is inconceivable how appeal filed by the ITD against the assessment order is maintainable before the ITAT but the company’s appeal emanating from the same order is not maintainable.”

    “Surprisingly, the ITAT has upheld the addition under Section 69A of the Act, purely on conjectures and surmises, ignoring the evidence adduced by the company including the annual reports of the investors,” NDTV was quoted as having said, “The legal advice received is that a consistent view has to be taken and it appears that the order had been passed in a haste and the above inconsistencies have arisen because of a hurried order. We have been advised that Section 69A of the Act is applicable only when money is found in possession of a taxpayer but not accounted for in the books of accounts.

    “However, the said section has no application in the present case since admittedly, investment made by NBC Universal (admittedly then subsidiary of the GE Group) through its step down subsidiary, Universal Studios International BV, was duly recorded in the books of accounts of the company’s subsidiary, viz, NDTV Networks International Holdings BV.”

    Stating that it will continue to fight the “misguided case” made by income tax department, NDTV said it is “exploring all options available to it in accordance with law.

    ALSO READ:

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    NDTV gets slapped with higher tax dues notice

     

  • NDTV launches two new channels on Virgin cable in UK

    NDTV launches two new channels on Virgin cable in UK

    MUMBAI: New Delhi Television Ltd (NDTV) has launched two channels on UK based telecommunication mass media company Virgin cable.

    The company informed BSE that the company has launched its Hindi news channel NDTV India in the UK. Along with the news channel a subsidiary of the company, NDTV Lifestyle Limited, has launched an Indian food channel ‘NDTV Spice’ on Virgin’s cable network.

    NDTV has a portfolio of three channels, including NDTV 24×7, NDTV India and India’s first ever 2-in-1 channel NDTV Profit-NDTV Prime (business news and infotainment). The channels target the global Indian with news.

    NDTV has a roller-coaster ride as a media company-turned-broadcaster in the last over 25 years.

    Last week, the income tax appellate tribunal (ITAT) ruled in its favour on tax matters related to assessment years 2007-2008 and 2008-2009 that had created a controversy.

    The company has been caught up in a legal tangle with the income tax department for some time. The ITAT said that NDTV need not pay tax on additional amount of Rs 22.09 crore, which the department wanted to add to its taxable income.

  • NDTV launches two new channels on Virgin cable in UK

    NDTV launches two new channels on Virgin cable in UK

    MUMBAI: New Delhi Television Ltd (NDTV) has launched two channels on UK based telecommunication mass media company Virgin cable.

    The company informed BSE that the company has launched its Hindi news channel NDTV India in the UK. Along with the news channel a subsidiary of the company, NDTV Lifestyle Limited, has launched an Indian food channel ‘NDTV Spice’ on Virgin’s cable network.

    NDTV has a portfolio of three channels, including NDTV 24×7, NDTV India and India’s first ever 2-in-1 channel NDTV Profit-NDTV Prime (business news and infotainment). The channels target the global Indian with news.

    NDTV has a roller-coaster ride as a media company-turned-broadcaster in the last over 25 years.

    Last week, the income tax appellate tribunal (ITAT) ruled in its favour on tax matters related to assessment years 2007-2008 and 2008-2009 that had created a controversy.

    The company has been caught up in a legal tangle with the income tax department for some time. The ITAT said that NDTV need not pay tax on additional amount of Rs 22.09 crore, which the department wanted to add to its taxable income.

  • NDTV wins 2007-2008 tax appeals case

    NDTV wins 2007-2008 tax appeals case

    MUMBAI: Delhi-based news broadcaster the Prannoy Roy-headed NDTV has been caught up in a legal tangle with the income tax (IT) department for sometime. Last week, the income tax appellate tribunal (ITAT) ruled in its favour on tax matters related to assessment years 2007-2008 and 2008-2009.

    The ITAT said that NDTV need not pay tax on additional amount of Rs 22.09 crore which the department wanted to add to its taxable income. The ITAT rejected this claim entire amount, with the exception of Rs 12 lakh.

    The ITAT also allowed directed the IT department to allow it higher ESOP expenses of Rs 43.55 crore, against the earlier claim of Rs 21 crore. This has reduced the tax liability for NDTV for that period even further.

    NDTV won the ITAT’s nod on another ground too: it agreed that the company had correctly disclosed its international transactions with its associated enterprises including the provision for shareholder services on which no markup is required to be charged under transfer pricing regulation and negated the claim of the IT department of charging a notional markup on such services. Consequently, NDTV has got a tax relief to the tune of Rs 82.35 lakh in this regard.

    NDTV has other cases from IT department pending for other assessment years.

    The company notched up a loss of Rs 38 crore in its latest financial filings for Q1 2017 on a topline of Rs 115 crore.

    Its share was trading at Rs 78 odd at the close of trading last week.

  • NDTV wins 2007-2008 tax appeals case

    NDTV wins 2007-2008 tax appeals case

    MUMBAI: Delhi-based news broadcaster the Prannoy Roy-headed NDTV has been caught up in a legal tangle with the income tax (IT) department for sometime. Last week, the income tax appellate tribunal (ITAT) ruled in its favour on tax matters related to assessment years 2007-2008 and 2008-2009.

    The ITAT said that NDTV need not pay tax on additional amount of Rs 22.09 crore which the department wanted to add to its taxable income. The ITAT rejected this claim entire amount, with the exception of Rs 12 lakh.

    The ITAT also allowed directed the IT department to allow it higher ESOP expenses of Rs 43.55 crore, against the earlier claim of Rs 21 crore. This has reduced the tax liability for NDTV for that period even further.

    NDTV won the ITAT’s nod on another ground too: it agreed that the company had correctly disclosed its international transactions with its associated enterprises including the provision for shareholder services on which no markup is required to be charged under transfer pricing regulation and negated the claim of the IT department of charging a notional markup on such services. Consequently, NDTV has got a tax relief to the tune of Rs 82.35 lakh in this regard.

    NDTV has other cases from IT department pending for other assessment years.

    The company notched up a loss of Rs 38 crore in its latest financial filings for Q1 2017 on a topline of Rs 115 crore.

    Its share was trading at Rs 78 odd at the close of trading last week.

  • NDTV files fresh application against Quantum Securities

    NDTV files fresh application against Quantum Securities

    MUMBAI:  Prannoy Roy-promoted media company New Delhi Television (NDTV) has filed a fresh application against a minority shareholder, Quantum Securities Limited (QSL) in the Bombay High Court, after QSL ran a newspaper advertisement accusing NDTV of not disclosing vital facts during a presentation to fund managers, equity brokers and investors by the company.

     

    Quantum owns 0.22 per cent in the group. According to the advertisement published in the Economic Times, QSL said the company, in its presentation, did not reveal certain facts that included the income tax departments’ demand of Rs 492 crore tax dues for the annual year 2009-10.

     

    “Sum of parts of NDTV group assets is not reflected in the market cap of NDTV. This is particularly true for the value of its digital assets.” It further said, the network had made no mention of the notice served to NDTV and its promoters by the department and a pending adjudication with the Income Tax Appellate Tribunal (ITAT).

     

    The ad further highlighted that the issues relating to the Company Petition for Reduction of Capital filed by NDTV in Delhi High Court was also not mentioned. It quotes from an affidavit filed by the department “there are serious allegations of round-tripping for evasion of taxes in the case of the petitioner company for the annual years 2010-11 and 2011-12, being investigated.”

     

    The income tax department also objected to the decision of NDTV Board relating to NDTV Convergence and stated that the petitioner company (NDTV) has not disclosed material facts while seeking approval of capital reduction. This establishes that the applicant company (NDTV) has not approached with clean hands. This capital reduction has been proposed with malafide intention of defrauding revenue of its legitimate tax dues.

     

    Additionally, the ad said the presentation did not mention that NDTV Convergence had filed a charge to the Registrar of Companies, New Delhi that hypothecated all movable and immovable assets to YES Bank.

     

    In response to QSL’s ad, NDTV clarified to the National Stock Exchange (NSE) that the allegations were baseless as it had made all announcements on the proceedings (in the ITAT and the Delhi High Court) to the exchanges as required by law and also included those in the annual report of the company.

     

    “The allegations and insinuations and statements made by QSL in the said announcement are completely false, vexatious and have no basis in law or in fact. The announcement places selective material before the public at large and makes false and baseless allegations against the Company,” NDTV said in the notice.

     

    “The Company submits  that  the  allegations made  by  the  QSL in  the Announcement are  completely baseless as the  Company has in fact made all necessary  announcements in relation to the proceedings to the stock exchanges as required by law. Further, the necessary disclosures in relation to the same have also been made in the Annual Report of the Company,” the statement added.

     

    The notice by NDTV further highlighted the fact that QSL director Sanjay Dutt and his related companies have been investigated for market manipulation by capital markets regulator Securities and Exchange Board of India.

     

    Further it said, “At  the  outset  we   state  that   the Announcement is in flagrant violation of the injunction passed  by  the Hon’ble Bombay High  Court  against   inter-alia QSL and  its  directors including one Sanjay Dutt.”

     

    On 27 June 2013, the company sent a legal notice to Quantum Securities, Dutt and directors of the company, through its law firm Amarchand Mangaldas accusing him of making defamatory statements, writing to various regulators and ‘launching a tirade’ against NDTV because he bears a ‘grudge’ against the broadcaster. Dutt was a consultant to NDTV from 2006-08.

     

    The court had granted relief to NDTV by its orders dated 6 and 13 August and 13 and 17 October 2013, in terms of which QSL and its directors were restrained from issuing any defamatory letters, notices, emails, etc.

     

    Click here to read the full statement by NDTV