The finance ministry has decided to issue fresh notice in the income tax re-assessment case of NDTV. The decision follows the Supreme Court ruling that allowed the revenue department to do so.
However, NDTV in a statement said the Supreme Court on Friday refused to allow the revenue department to reopen an assessment that was decided years ago.
The Supreme Court has proved that the rule of law prevails above all else, NDTV said.
According to sources in the finance ministry, the Supreme Court on Friday endorsed the view of the Income Tax Department that “there were reasons to believe that income had escaped assessment” in the case of NDTV for the year 2008-2009.
The reasons to believe recorded by the IT Department while reopening the case in March 2015 stated that the funds amounting to Rs 405.09 crores introduced into the books of NNPLC, a UK based subsidiary of NDTV was nothing but NDTV’s own undisclosed income.
Sources alleged that it is evident that NDTV Ltd by way of a scheme had designed to re-introduce or re-route its undisclosed income over three assessment years by layering it through its various subsidiary companies with the ultimate destination being NDTV.
The sources said the Supreme Court has held that “the notice issued to the assessee shows sufficient reasons to believe on the part of the assessing officer to reopen the assessment” and accordingly it has given liberty to the deparment of revenue to issue fresh notice under the second proviso of the section 147 to reopen the assessment of this year.
The Supreme Court has not given any clean cheat to the NDTV, the sources said.