Mumbai: The Income Tax Appellate Tribunal in its latest ruling has revealed that ministry of corporate affairs had in 2009 acted in collusion with NDTV founder Prannoy Roy and hid certain information related to shell companies set up by the news media firm to launder Rs 642 crore.
“The ITAT held Dr. Prannoy Roy personally responsible in tax evasion and laundering of 642 crore of rupees,” a report on DNA has claimed. ITAT ruling states that NDTV and its promoters laundered Rs 1,100 crore worth black money during 2007-08 to 2009-10.
The tax appellate authority has confirmed that Rs 642.54 crore out of total amount of laundered money was black money.
“The ITAT confirmed the finding of the income Tax Department that Prannoy Roy made conscious attempt to hide financial details of foreign paper subsidiary companies of NDTV by not attaching audited profit loss account, balance sheet and annual report of these foreign shell companies along with annual report of NDTV,” DNA quotes the ITAT order as saying.
The order also states that on NDTV’s appeal, the ministry of corporate affairs under UPA regime back in 2009 had granted certain exemptions to the news media company.
The request included an exemption from making “disclosure of financials of foreign companies”, the report added.
The tribunal also observed, “It is for other regulatory and supervisory agencies to get alarmed with such an act. In view of these glaring facts, we do not have any hesitation to say that the conduct of the assesse shows that they never had intention to disclose the details of its subsidiary companies and financial transactions to its stakeholders and to regulatory authorities including Income Tax Authorities.”