Delhi HC Grants Relief to NDTV Founders, ITAT Orders in Prannoy Roy’s Tax Case Quashed [Read Order]

The Delhi High Court yesterday granted relief to NDTV founders Dr Prannoy Roy & his Wife Radhika Roy by setting aside two orders of the tribunal, one granting an early hearing of an appeal by Prannoy Roy & his wife without appropriate notice to them and another order entertaining additional document not part of the record.

The Counsel for the Petitioners argued that ITAT’s opinion that an order directing early hearing is merely administrative is contrary to its own ruling in Olympia Paper & Stationery Stores vs. Assistant Commissioner of Income Tax.

The Counsel for the Revenue contended that additional documents were produced with the consent of the assessee’s Counsel and that the Tribunal could not be faulted for fixing an early date of hearing as the appeal was at an advanced stage of the hearing.

The bench comprising of Justice S. Ravindra Bhat and Justice A.K. Chawla observed that the Tribunal’s view, that an order allowing for early hearing is merely administrative, was incorrect. It relied on the decision of the Tribunal in Olympia Paper & Stationery Stores vs. Assistant Commissioner of Income Tax and held that the order of the Tribunal in the present case is erroneous and liable to set aside.

Regarding the entertainment additional documents not part of the record, the Bench observed “This Court is of the opinion that irrespective of what is apparent even if the documents were produced and in the possession of the ITAT, the question of their being part of the record of the lower appellate authority or the AO did not arise. That is the reason why in the first instance, a complete copy of the said agreement was sought from the assessee. Now there is no dispute that a complete copy is with the Revenue. Nevertheless, the proper procedure prescribed by law, in this case, has to be followed. In the given circumstances, this naturally means that the Revenue has to move a formal application under Rule 29 of the ITAT Procedure Rules to justify the bringing on record of these additional documents in its possession.”