Case Law Details
Mere disclosure of a transaction at the time of the original assessment proceedings does not protect the assessee from a re-assessment under section 147 if the assessing officer has information that indicates that the transaction is sham or bogus. In the present case, NDTV has alleged that the details of the corporate guarantee issued by NDTV to NNPLC regarding the Step Up Coupon Bonds was intimated to the Revenue during the original assessment proceeding. This argument of NDTV falls flat in light of the judicial decisions mentioned above considering that the assessing officer has reason to believe that this transaction is bogus. For these reasons, this Court is of the view that the impugned reassessment notice is valid in law and can be sustained.
Full Text of the High Court Judgment / Order is as follows:-
The present writ petitions have been filed by NDTV Ltd. (hereinafter, “NDTV”) against the notice proposing reassessment proceedings initiated by the Commissioner of Income Tax (hereinafter, “Respondent” or “CIT” or “Revenue”) under section 147/148 of the Income Tax Act, 1961 (hereinafter, “Act”) and the order of provisional attachment of Petitioner’s assets under section 281B of the Act. Since the two writ petitions arise out of common set of facts, the brief facts are set-out below.
2. NDTV operates news channels. In the FYs 2007-08 to 2011-12, it invested in a number of foreign subsidiaries, primarily in the UK and Netherlands. During the F.Y. 2006-07 and F.Y. 2008-09, NDTV received funds amounting to Rs. 1127 crore through these subsidiaries as under :–
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