Independent News Service Pvt. Ltd. Vs Assessing Officer (Delhi High Court)
The Delhi High Court has set aside an order and subsequent notice issued by the Income Tax Department against Independent News Service Pvt. Ltd., the parent company of India TV, a prominent news channel owned by Rajat Sharma. The court’s decision, pertains to an income tax reassessment proceeding initiated against the company for the Assessment Year (AY) 2017-18.
Independent News Service Pvt. Ltd. had challenged an order dated April 8, 2024, passed under Section 148A(d) of the Income Tax Act, 1961, and the subsequent notice issued under Section 148 of the Act. These actions by the Assessing Officer (AO) aimed to reopen the company’s assessment for AY 2017-18, alleging that income had escaped assessment.
Background of the Case
The petitioner, Independent News Service Pvt. Ltd., had initially filed its income tax return for AY 2017-18 on October 18, 2017, declaring an income of ₹61,35,36,200. A revised return was filed on March 26, 2019, with a declared income of ₹61,10,86,200. The original return was subjected to scrutiny, and the assessment was completed under Section 143(3) of the Act on November 22, 2019.
The dispute arose when the AO initiated proceedings for reopening the assessment by issuing a notice under Section 148A(b) of the Act on March 26, 2024. The basis for this reopening was information received from a survey conducted under Section 133A of the Act at the Jammu and Kashmir Bank (J&K Bank) headquarters in Srinagar on May 11, 2019. During this survey, data related to inward and outward remittances was collected.
