NDTV gets show cause notice from Income Tax Dept
Moneylife Digital Team 17 June 2016
Prannoy Roy-led New Delhi Television Ltd (NDTV) has informed the Bombay Stock Exchange (BSE) that it received a show cause notice from a Deputy Commissioner related with an assessment order (AO) passed by the Income Tax Department for assessment year 2009-10. Earlier in February 2014, the I-T Department had served a tax demand of Rs450 crore on the company for AY2009-10, which the company did not inform to exchanges at that time. 
 
In a regulatory filing, NTDV stated that the matters included in the show cause notice received by it are 'premature, arbitrary and unlikely to be sustained in law.' “The company's bonafide belief is that it will succeed in its appeal before Income Tax Appellate Tribunal (ITAT) and no penalty could be levied as alleged in the show cause notice,” it added.
 
The assessment of AY2009-10 is sub-judice before the ITAT. NDTV had appealed before the ITAT against the assessment order dated 21 February 2014. The ITAT had stayed the demand arising out of the assessment order on payment of Rs5 crore, as per NDTV's filing with the stock exchanges.  The appeal has been pending before the ITAT for more than two years. 
 
This show cause notice comes on the back of the show cause notice from Securities and Exchange Board of India (SEBI) against the company and its promoters for their failure to multiple disclosures information to exchanges. (Read: SEBI finally initiates action against NDTV, promoters)
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