Delhi High Court Quashes Income Tax Notices Against NDTV Founders, Calls Them Arbitrary
Court says repeated reassessment amounts to harassment and uncertainty
Prannoy Roy and Radhika Roy awarded token costs against Income Tax Department
By Our Legal Reporter
New Delhi: January 20, 2026:
In a significant judgment, the Delhi High Court has quashed income tax reassessment notices issued in 2016 against NDTV founders Prannoy Roy and Radhika Roy, terming them “arbitrary” and “without jurisdiction.” The division bench of Justices Dinesh Mehta and Vinod Kumar observed that reopening the same transactions for reassessment after they had already been scrutinized earlier amounted to harassment and undermined the principles of certainty in taxation.
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The court imposed a token cost of ₹2 lakh on the Income Tax Department, directing that ₹1 lakh be paid to each petitioner. This ruling is being seen as a major relief for the Roys, who have faced multiple rounds of litigation over alleged financial irregularities linked to their promoter company, RRPR Holding Pvt. Ltd.
Background of the Case
- The dispute relates to interest-free loans advanced to RRPR Holding Pvt. Ltd., a promoter group company of NDTV.
- The Income Tax Department had first reopened the assessment in 2011, leading to a reassessment order in 2013.
- In 2016, fresh reassessment notices were issued for the same transactions, prompting the Roys to challenge them in court.
- The petitioners argued that reopening assessments on identical grounds was illegal and beyond jurisdiction.
Court’s Observations
The Delhi High Court made strong remarks about the conduct of the tax authorities:
- Repeated reassessment is arbitrary: The court said reopening the same issue twice amounts to harassment and unpredictability.
- Violation of constitutional rights: The bench noted that arbitrary reassessment undermines fundamental rights and creates uncertainty in taxation.
- Costs imposed on the department: The court ordered the Income Tax Department to pay ₹1 lakh each to Prannoy Roy and Radhika Roy as token compensation.
The judgment stressed that taxation must be conducted with fairness and predictability, not repeated harassment of assessees.
Why This Judgment Matters
This ruling carries wider implications beyond the NDTV case:
- Legal Precedent: It strengthens the principle that reassessment cannot be initiated repeatedly for the same issue.
- Taxpayer Protection: It safeguards individuals and companies from arbitrary actions by tax authorities.
- Media Industry Impact: As NDTV is a prominent media house, the judgment also resonates in the broader debate about regulatory pressures on media organizations.
Reactions to the Judgment
- Legal Experts: Many hailed the ruling as a reaffirmation of taxpayer rights and judicial oversight over tax authorities.
- Media Circles: The decision was seen as a relief for NDTV’s founders, who have faced long-standing scrutiny.
- Public Opinion: The case sparked discussions on the need for transparency and fairness in tax administration.
Broader Legal Context
The ruling aligns with earlier Supreme Court judgments that emphasized certainty in taxation and protection against arbitrary reassessment. Courts have repeatedly held that once an issue has been examined and settled, reopening it without fresh material is unjustified.
This judgment also underscores the judiciary’s role in checking excessive powers of tax authorities and ensuring that taxpayers are not subjected to endless litigation.
Conclusion
The Delhi High Court’s decision to quash the 2016 reassessment notices against NDTV founders Prannoy Roy and Radhika Roy is a landmark ruling in the field of taxation law. By calling the notices arbitrary and imposing costs on the Income Tax Department, the court has reinforced the principle that tax reassessment must be fair, predictable, and not a tool for harassment.
This judgment will likely serve as a precedent in future cases, ensuring that taxpayers are protected from repeated reassessment on identical grounds. For the Roys, it marks a significant legal victory after years of litigation.
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