Allowed

Rrpr Holdings Private Limited v. Deputy Commissioner of Income Tax, CIRCLE-18(1)

Delhi HC10 Sept 2024W.P.(C)/1664/2016

Case brief

AI extract

What is this about?

The High Court quashed a notice under Section 148 of the Income Tax Act, 1961, and an order disposing of objections to reassessment proceedings. The court found the foundation of the reassessment action factually incorrect regarding the purpose of loan proceeds and the holding of shares in NDTV.

What did the court decide?

The impugned notice under Section 148 of the Income Tax Act, 1961 dated 23 March 2015 and the order disposing of objections were quashed. The protective order in the connected petition was set aside.

Rrpr Holdings Private Limited Vs Deputy Commissioner of Income Tax… — Income Tax | Delhi HC (2024)

¶1

$~55 & 56

¶2

IN THE HIGH COURT OF DELHI AT NEW DELHI

¶3

W.P.(C) 1664/2016

¶4

RRPR HOLDINGS PRIVATE LIMITED .....Petitioner

¶5

Through: Mr. Sachit Jolly, Mr. Rishabh Malhotra, Ms. Disha Jham, Ms. Soumya Singh, Mr. Devansh Jain, Advs.

¶6

versus

¶7

DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE18(1) .....Respondent

¶8

Through: Mr. N.P. Sahni, Spl. Counsel with Mr. Indruj Singh, SSC with Mr. Sanjeev Menon, Mr Rahul Singh, Mr.Anmol Jagga, Advs.

¶9

¶10

W.P.(C) 10063/2017

¶11

RRPR HOLDING PRIVATE LIMITED .....Petitioner

¶12

Through: Mr. Sachit Jolly, Mr. Rishabh Malhotra, Ms. Disha Jham, Ms. Soumya Singh, Mr. Devansh Jain, Advs.

¶13

versus

¶14

THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-18(1), NEW DELHI & ANR. .....Respondents

¶15

Through: Mr. N.P. Sahni, Spl. Counsel with Mr. Indruj Singh, SSC with Mr. Sanjeev Menon, Mr

¶16

W.P.(C) 1664/2016 & connected Page 1 of 4

¶17

This is a digitally signed order.

¶18

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 13/09/2024 at 12:27:14

¶19

Rahul Singh, Mr.Anmol Jagga, Advs.

¶20

CORAM: HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE RAVINDER DUDEJA

¶21

O R D E R % 10.09.2024 W.P.(C) 1664/2016

¶22

This writ petition has been preferred seeking the following reliefs:

¶23

“a. Issue a writ in the nature of Certiorari or an order, quashing the impugned notice u/s 148 of the Act dated 23.03.2015 and the impugned letter/order dated 29.01.2016, disposing of the objections to the initiation of the reassessment proceedings of the respondent;

¶24

b. Issue a writ in the nature of Certiorari or an order quashing the reassessment proceedings initiated by the respondent in pursuance to the impugned notice dated 23.03.2015 u/s 148 of the Act, for the assessment year 2010-11;

¶25

c. Issue a writ in the nature of mandamus or an order prohibiting the respondent to frame reassessment under the relevant provisions of the Act;

¶26

d. Issue a writ in the nature of Mandamus prohibiting the respondent from making fishing and roving inquiries;

¶27

e. Pass any other order(s) as this Hon'ble Court may deem to be fit and more appropriate in order to grant interim relief to the petitioner;”

¶28

The challenge is to the initiation of reassessment action for Assessment Year [ “AY” ] 2010-11. As we go through the reasons which were recorded in support of the proposed action for reassessment, we find that the principal allegations are the following.

¶29

It is conceded before us that the petitioner, M/s RRPR Holdings Private Limited [ “RRPR” ], was incorporated in 2005 with its equity being held by Ms. Radhika Roy and Mr. Prannoy Roy in the

¶30

W.P.(C) 1664/2016 & connected Page 2 of 4

¶31

This is a digitally signed order.

¶32

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 13/09/2024 at 12:27:14

¶33

percentage of 50% each.

¶34

It is further alleged that RRPR acquired shares comprising of 7.5% of the shareholding of New Delhi Television Limited [ “NDTV” ] for a price set out and noticed in paragraph 1 of the letter dated 06 October 2015. The transaction with Vishwa Pradhan Commercial Pvt. Ltd. [ “VPCPL” ] rested on a loan agreement dated 21 July 2009.

¶35

It is the admitted case of parties that the aforesaid loan proceeds were utilized by RRPR to retire certain outstanding loans which were owed to ICICI Bank. The AO, however, in paragraph 7 observes that the terms of the loan agreement would indicate that the loan received was in fact consideration for the transfer of 26% of shares of NDTV.

¶36

This clearly appears to be factually incorrect since the shares which were purchased from the promoters by RRPR are detailed in paragraph 2. Before us it is further conceded that those shares continue to be held by RRPR in its own name and were never transferred to VPCPL.

¶37

In view of the aforesaid, and since the very foundation of the impugned action for reassessment is found to be factually wrong, we find ourselves unable to sustain the impugned notice dated 23 March 2015 under Section 148 of the Income Tax Act, 1961.

¶38

We accordingly allow this writ petition and quash the impugned notice dated 23 March 2015.

¶39

W.P.(C) 10063/2017

¶40

In light of the order passed by us in W.P.(C) 1664/2016, it is conceded by the respondents that the protective order which stands impugned in the instant writ petition would no longer sustain. Accordingly, we allow the present writ petition and set aside the

¶41

W.P.(C) 1664/2016 & connected Page 3 of 4

¶42

This is a digitally signed order.

¶43

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 13/09/2024 at 12:27:14

¶44

impugned order of 25 October 2017.

¶45

YASHWANT VARMA, J

¶46

RAVINDER DUDEJA, J

¶47

SEPTEMBER 10, 2024/ib

¶48

W.P.(C) 1664/2016 & connected Page 4 of 4

¶49

This is a digitally signed order.

¶50

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 13/09/2024 at 12:27:14

Rrpr Holdings Private Limited v. Deputy Commissioner of Income Tax, CIRCLE-18(1)

Case brief

What is this about?

What did the court decide?

Rrpr Holdings Private Limited v. Deputy Commissioner of Income Tax, CIRCLE-18(1)

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Sangeeta Bakshi & Ors. Vs Municipal Corporation of Delhi

Urmila Jaiswal Vs Employees State Insurance Corporation and Ors.

Air Force Naval Housing Board Vs Central Bank of India Branch Air Force Station & Ors.

Mmtc Pamp India Pvt. Ltd. & Ors. Vs the Local Committee South District & Ors.

Akhil Dilli Prathmik Shikshak Sangh Regd & Anr. Vs Govt.of N.C.T.Delhi & Ors.

Sanjay Yadav Vs Municipal Corporation of Delhi & Ors.

Msc Agency (I) Pvt. Ltd. Vs UOI and Ors.

M/S Osm Projects Private Limited, through Its Director Surender Sharma & Anr. Vs Union of India through Chairman Central Board of Indirect Taxes and Customs Cbic Departme

I.I.L.M Institute for Higher Education Vs Commissioner of Central Excise & Service Tax (Adjudication) & Anr.

The Commissioner of Income Tax - International Taxation -3 Vs Westin Hotel Management L.P.

The Principal Commissioner Cgst Delhi III Vs Ms Chetak Logistics Limited

Commissioner of Customs Vs M/S. Fancy Images

Pr. Commissioner of Income Tax- 1 Vs M/S Clc & Sons Pvt. Ltd.

Rrpr Holding Private Limited Vs the Deputy Commissioner of Income Tax, CIRCLE-18(1), New Delhi & Anr.