The Delhi High Court on Monday quashed the tax notices issued to NDTV founders Prannoy Roy and Radhika Roy in 2016 in connection with interest-free loans extended by RRPR Holding Pvt Ltd, the media firm’s promoter entity.
A division bench of Justices Dinesh Mehta and Vinod Kumar asked the Income Tax (IT) department to pay Rs 1 lakh each to the former NDTV promoters and directors as token cost, observing that the department’s action was “arbitrary and without jurisdiction” and “no amount of cost can be treated enough for these cases”.
The IT department had issued separate reassessment notices to the Roys in March 2016 over their income in 2009-10 on account of certain interest-free loans received by them from RRPR. They were then RRPR’s shareholders and directors.
This was the second time they had received reassessment notices over the same issue. The earlier round of reassessment proceedings was initiated in 2011 and ended in 2013 after the assessing officer expressed satisfaction with their response to the notices.
The HC bench said, “…merely because the new incumbents in the chair feel themselves to be wiser and they hold another opinion which their predecessor did not or could not take, an already settled assessment cannot be unsettled and the petitioner cannot be made to face the rigmarole or harassment of the assessment proceedings again and again.”
The bench held that such action by the IT Department “fell foul” to the Roys’ fundamental and Constitutional rights over their property and to carry on their occupation or profession.
“The facts of the present case themselves speak volumes, as to how the proceedings are arbitrary and contrary to statutory provisions besides being against the fundamental principles of adjudicatory process,” the bench said.
Story continues below this ad
The bench, while allowing the Roys’ appeals against the reassessment notices, also said: “No amount of cost can be treated enough for these cases. However, we cannot but leave these cases without imposing any. Hence, we impose a token cost of Rs 1 lakh per case upon the respondents to be paid to each of the petitioners.” With two separate petitions filed by Radhika and Prannoy respectively, the department has to pay Rs 2 lakh to them.
In its reassessment notices to the Roys in 2011, the IT department had alleged that their income escaped assessment on the grounds that a transaction of purchase of shares of NDTV Limited, a listed company, had been carried by the petitioner with RRPR at a substantially low consideration than its market value, with the loan being interest-free. The interest-free loan, according to the department, qualified to be considered as deemed income.
Subsequently, in 2013, the department issued a notice to the Roys, seeking that they show cause why the loan received by them from RRPR not be treated as income. After responding with records of the accounts, the assessing officer had expressed satisfaction and chose not to make any addition.
However, in notices issued in March 2016, the reassessment proceedings were again reopened based on a complaint. The reasons for the reassessment were provided in July 2016, which referred to the same ground of reassessment as the 2011 proceedings in effect. The Roys then moved HC, which stayed the proceedings before the assessing officer in 2017.
Sohini Ghosh is a Senior Correspondent at The Indian Express. Previously based in Ahmedabad covering Gujarat, she recently moved to the New Delhi bureau, where she primarily covers legal developments at the Delhi High Court
Professional Profile
Background: An alumna of the Asian College of Journalism (ACJ), she previously worked with ET NOW before joining The Indian Express.
Core Beats: Her reporting is currently centered on the Delhi High Court, with a focus on high-profile constitutional disputes, disputes over intellectual property, criminal and civil cases, issues of human rights and regulatory law (especially in the areas of technology and healthcare).
Earlier Specialty: In Gujarat, she was known for her rigorous coverage in the beats of crime, law and policy, and social justice issues, including the 2002 riot cases, 2008 serial bomb blast case, 2016 flogging of Dalits in Una, among others.
She has extensively covered health in the state, including being part of the team that revealed the segregation of wards at the state’s largest government hospital on lines of faith in April 2020.
With Ahmedabad being a UNESCO heritage city, she has widely covered urban development and heritage issues, including the redevelopment of the Sabarmati Ashram
Recent Notable Articles (Late 2025)
Her recent reporting from the Delhi High Court covers major political, constitutional, corporate, and public-interest legal battles:
High-Profile Case Coverage
She has extensively covered the various legal battles - including for compensation under the aegis of North East Delhi Riots Claims Commission - pertaining to the 2020 northeast Delhi riots, as well as 1984 anti-Sikh riots.
She has also led coverage at the intersection of technology and governance, and its impact on the citizenry, from, and beyond courtrooms — such as the government’s stakeholder consultations for framing AI-Deepfake policy.
Signature Style
Sohini is recognized for her sustained reporting from courtrooms and beyond. She specialises in breaking down dense legal arguments to make legalese accessible for readers. Her transition from Gujarat to Delhi has seen her expand her coverage on regulatory, corporate and intellectual property law, while maintaining a strong commitment to human rights and lacuna in the criminal justice system.
X (Twitter): @thanda_ghosh ... Read More
