Delhi HC Sets Aside ITAT Remand on NDTV Corporate Guarantee Issue

By CA Sandeep Kanoi Income Tax Judiciary August 22, 2026

TaxGuru Citation: 2026 taxguru.in 11491
Case Name: New Delhi Television Limited Vs ACIT (Delhi High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Delhi High Court

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New Delhi Television Limited Vs ACIT (Delhi High Court)

Summary: New Delhi Television Limited challenged the Income Tax Appellate Tribunal’s order dated 16 June 2020 concerning Assessment Year 2008-09. The dispute arose from USD 100 Million Step-up Coupon Bonds issued by NDTV’s U.K. subsidiary, M/s NDTV Networks PLC, to various investors outside India. The Assessing Officer had made an addition towards alleged guarantee fee by treating the alleged corporate guarantee as an international transaction under Section 92B of the Income Tax Act, 1961. The ITAT subsequently remitted the matter to the AO for an appropriate reference to the TPO, leaving other issues open. Before the Delhi High Court, the assessee relied on the Special Bench’s conclusion that it had incurred an obligation by giving an undertaking which was short of a guarantee. The Revenue submitted that whether such undertaking constituted an international transaction under Section 92B required examination by the TPO. The High Court found that the Tribunal’s broad terms of remit lacked clarity. It therefore set aside the Tribunal’s order to that extent and directed the AO to first examine whether the obligation arising from the undertaking amounted to an international transaction. If answered affirmatively, the matter could proceed in accordance with the direction recorded from the Revenue’s counsel regarding transmission to the TPO. All rights and contentions on merits were kept open. The TPO’s subsequent order and draft assessment order were also set aside consequent to the de novo exercise directed by the Court.