India’s Income Tax Department (ITD) has slapped a fine of Rs.525 crores on New Delhi Television Limited (NDTV) for fooling, concealing more than Rs.642 crore income earned through sham transactions in 2008. When caught for the unexplained money of how more than Rs.642 crores reached its kitty via Bermuda, NDTV claimed that they “sold a dream”. This curious answer was given to the ITD by NDTV by claiming that this unexplained money was through some inflated share transfer and dividend from a tax haven based firm according to an article by pggurus.
The 14 page Income Tax notice was served to NDTV was on June 15, 2016. Till date it has not replied to the ITD. According to tax sleuths, NDTV staffers are saying that their head Prannoy Roy is unwell or staying at his mansion rejuvenating in South Africa etc. The Income Tax notice puncturing NDTV’s tax fraud is published at the end of this article.
The notice also shows an email trail between an auditor Vivek Mehra of Price Waterhouse Coopers (PWC) and Prannoy Roy on how to conceal this income. The emails are dated on or around 21st May 2008 and in that Vivek Mehra is advising Roy on how not to mention that NDTV is receiving this as a dividend or otherwise. The notice also reproduces seven email communications between Prannoy and others on how to creatively conceal the truth of this transaction. Vikram Chandra was also part of this elaborate scheme as he is listed as the CEO and the only employee in a shell company titled NDTV Networks PLC (NNPLC).
Read it here
Feature image courtesy www.radial.com
