Indian Broadcasting Foundation v. Chief Commissioner Of Incometax (E) & Ors

$~30 *IN THE HIGH COURT OF DELHI AT NEW DELHI +W.P.(C) 2489/2017 & CM Nos. 35798-35799/2016 INDIAN BROADCASTING FOUNDATION..... PetitionerThrough: Ms. Prem Lata Bansal, Sr. Adv. withMs. Mansi Sinha, Adv. versus CHIEF COMMISSIONER OF INCOMETAX (E) & ORS. ..... Respondents Through: Mr. Sanjay Kumar and Mr. DileepShivpuri, Advs. CORAM:HON'BLE MR. JUSTICE S. RAVINDRA BHATHON'BLE MR. JUSTICE NAJMI WAZIRIO R D E R%17.03.2017 Issue notice. Mr. Sanjay Kumar accepts notice for the respondents.Withconsent of the counsel, the petition is taken up for disposal. The petitioner is aggrieved by the AO’s demand under Section220 of the Income Tax Act, 1961 for the sum of Rs. 33,29,469/-constituting 85% of the total outstanding of Rs. 2,21,96,460/-. Thepetitioner’s application for staying the demand is pending before theCommissioner (E).The AO has currently demanded the amountrejecting the assessee’s explanation that the said sum was invested inBroadcast Audience Research Council (BARC) on account of CentralGovernment’s policy, through the directives of the appropriateministry. It is contended that this could not result in a disallowance as such investment yielded dividend that could, in all likelihood, attractincome tax. The Court notices that the AO applied the Board’s officememorandum dated 29.02.2016 and has granted relief to the extent of85% of the demand.However, having regard to the materials onrecord, it is quite clear that the amounts were deposited with theBARC not by way of investment or choice, but on account of aCentral Government policy. The Court is of the opinion that this peculiar circumstancewarrants adoption of the policy, spelt out in para 4(D) of thememorandum dated 29.02.2016.The petitioner’s appeal may,therefore, be decided by the concerned Appellate Commissionerwithin three months from today.Pending a final decision, nocoercive steps shall be taken to enforce the demand. In the light ofthe above order, the petitioner shall ensure that the review applicationfiled before the CIT(E) and the Chief Commissioner is withdrawnwithin a week. The writ petition is disposed off in the above terms.Dasti. S. RAVINDRA BHAT, J MARCH 17, 2017/kk NAJMI WAZIRI, J