I-T dept levies Rs 436.8 crore penalty on NDTV

New Delhi Television Ltd (NDTV) today said income tax department has levied a penalty of Rs 436.80 crore on the company for assessment year 2009-10.

The company today received an order under section 271 (1) (C) of Income Tax Act from the Income Tax Department levying penalty of Rs 436.80 crore for the assessment year 2009-10, NDTV said in BSE filing.

The company said it is currently examining the order and legal option available to it. It will take necessary action accordingly.

Section 271(1)(c) provides for levying penalty in case an assessee has concealed income particulars or furnished inaccurate details.

Earlier, the Income Tax Appellate Tribunal (ITAT), had said that the NDTV group laundered Rs 642.54 crore through a complex cobweb of shell companies. The order states that NDTV and its promoters laundered 1,100 crore of black money during 2007-08 to 2009-10. The ITAT order, which runs into 385 pages, stated: "The real nature of the transaction was actively and deliberately concealed under a thorough, methodical and calculated planned strategy".

The amount (Rs 624 crore) received by NDTV was from a subsidiary for allotting shares to NBC Universal Inc and Universal Studios International BV. The shares were allotted at Rs 7,015 each to the companies — which had no business activities. It was done without the valuation of shares.

After analysing the various subsidiaries and internal mails, the ITAT documents suggested that NDTV has made a "conscious, deliberate and well-planned attempt to conceal particulars of income."

The ITAT, in a ruling on July 14, upheld the tax demand of around Rs 450 crore raised by the Income Tax Department in a case pertaining to a US$150 million investment by US television network NBC in NDTV Networks in 2008. NDTV Networks is the holding company of NDTV.