The Delhi High Court on Tuesday told the I-T Department not to take any coercive step against NDTV in connection with a ₹428-crore demand after rapping it for asking the media house to make an immediate payment which appeared to be an “overenthusiastic step” and “on the face of it illegal”.
“How can you pass penalty order when no time has been given for payment of the amount which was determined on July 26,” a Bench of Justices S. Muralidhar and Pratibha M. Singh asked the Income Tax (I-T) department.
The court said it was “satisfied” that there was a prima facie case in favour of New Delhi Television (NDTV).
Notice issued
The court also issued a notice to the I-T Department and sought its reply on the television channel’s plea challenging the demand order of July 26 and a show cause notice of the same day. The notice was issued for failure to pay the amount in time.
Senior advocate Harish Salve, appearing for NDTV, contended that the July 26 order was “without jurisdiction” and based on “piecemeal assessment”. Pulling up the tax authority for issuing the demand order and the notice, the Bench noted that the time given for depositing the amount was “immediately now”, which appeared to be an “overenthusiastic step” and “on the face of it illegal”. In its defence, the department contended that only a show cause notice was issued and it was in respect of two unpaid demands for 2007-08 and the one under challenge of 2009-10.
Senior advocate Sanjay Jain, representing the department, also argued that the media house could go in appeal against the order to the commissioner concerned of the I-T Department.
