New Delhi Television (NDTV) has got partial relief from Income Tax Appellate Tribunal (ITAT) in a case related to payment of income tax. The ITAT has disallowed a tax claim by the Income Tax department in excess of Rs 22 crore from the Delhi-based media company for the assessment years 2007-08 and 2008-09.
Earlier, the firm got tax relief under the same case from ITAT for AY2006-07. The I-T department had disallowed expenditure aggregating in excess of Rs 50 crore incurred by the media company during AY2006-07 and AY2010-11.
While, the I-T department added Rs 22.09 crore on NDTV's tax bill for the two assessment years. ITAT has asked the firm to pay Rs 12,00,000. It has "also asked the tax officer to allow additional allowance of employee stock ownership plan (ESOP) expenses. According to the claim of ESOP expenses now allowed to NDTV is Rs 43.53 crore as against original claim of Rs 21 crore. This will mean NDTV will pay even lower tax than earlier", the company informed the Bombay Stock Exchange.
After the recent order by ITAT, I-T department's additional tax claims has been disallowed for three consecutive years - AY 2006-07 to 2008-09. While, for the AY 2006-07 was struck down by the ITAT earlier, the I-T department had approached the Delhi high court against the order. The Delhi HC dismissed the appeal in July, 2016. Tax claims related to the next two assessment years are still under ITAT's purview.