THE INCOME TAX APPELLATE TRIBUNAL DELHI “I” BENCH: NEW DELHI BEFORE MS.MADHUMITA ROY, JUDICIAL MEMBER &

SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.1564/Del/2016 [Assessment Year : 2010-11]

DCIT vs New Delhi Television Ltd.

Circle-18(1) 207, Okhla Industrial Estate New Delhi Phase-III, New Delhi PAN-AAACN0865D APPELLANT RESPONDENT ITA No.1623/Del/2016 [Assessment Year : 2010-11]

New Delhi Television Ltd. vs DCIT

207, Okhla Industrial Estate Circle-18(1)

Phase-III, New Delhi N ew Delhi PAN-AAACN0865D APPELLANT RESPONDENT Appellant by Shri Sachit Jolly, Sr.Adv. &

Ms. Sherry Goyal, Adv.

Respondent by Shri Dharm Veer Singh, CIT DR Date of Hearing 16.12.2025 Date of Pronouncement 06.03.2026 ORDER PER MANISH AGARWAL, AM :

The captioned cross-appeals are filed by Revenue and assessee against the directions of Dispute Resolution Panel (“DRP”) dated 18.12.2015 on the objections filed by the assessee against the draft assessment order dated 27.01.2016 passed u/s 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961 (“the Act”) pertaining to assessment year 2010-11.

2. Brief facts of the case are that the assessee company is engaged in the business of television news broadcasting through its three channels namely, NDTV (24x7), a 24 hours English news channel; NDTV India, a 24 hours Hindi news channel; and NDTV Profits, a 24 hours business news channel. The return of income for the year under appeal was e-filed on 13.10.2010, declaring loss of INR 20,18,44,098/-. The case of the assessee was selected for scrutiny and notice u/s 143(2) of the Act was issued on 14.09.2011. Since the assessee was having international transactions with its Associated Enterprises (“AEs”), therefore, a reference was made u/s 92CA of the Act to Transfer Pricing Officer (“TPO”) for determination of Arm’s Length Price (“ALP”) of the international transactions carried out by the assessee. The TPO vide its order dated 22.01.2016, had enhanced the income of the assessee by making transfer pricing adjustment for the transactions with its AEs at INR 3,29,04,214/- which comprises of INR 39,02,614/- adjustments on account of Business Support Services and further adjustment of INR 2,90,01,600/- towards Corporate Guarantee. Thereafter, AO passed draft assessment order u/s 143(3)/144C(1) of the Act dated 30.04.2015 wherein the AO proposed total income to be assessed at INR 29,59,08,060/- by proposing following additions/disallowances:-

(i) Disallowance out of ESOP expenses Rs.39,740/- (ii) Disallowance u/s 14A r.w. Rules 8D Rs.1,34,19,838/- (iii) Disallowance u/s 40(a)(ia) of commission Rs.43,00,37,977/-

(iv) Disallowance u/s 40(a)(ia) for transmission and uplinking charges Rs.3,44,92,877/-

(v) Disallowance out of software expenses Rs.2,77,350/- (vi) Transfer pricing adjustments Rs.3,29,04,214/-

3. Against the said order, the assessee filed objections before the ld. Dispute Resolution Panel (“ld. DRP”) who vide its order dated 18.12.2015 has accepted some of the objections raised by the assessee and rejected the remaining. Thereafter, AO passed the final assessment order u/s 143(3)/144C of the Act dated 27.01.2016 at a total income of INR 17,06,11,869/- including TP adjustment of INR 3,11,92,489/- comprising of adjustment towards business support segments of INR 21,90,889/- and adjustment towards corporate guarantee of INR 2,90,01,600/-.

4. Aggrieved by the said order, both parties are in appeal before the Tribunal.

5. First we take Revenue’s appeal in ITA No.1564/Del/2016 for Assessment Year 2010-11.

ITA No.1564/Del/2016 [Assessment Year 2010-11]

[Revenue’s appeal]

6. The Revenue has raised following grounds of appeal:-

1. “Whether on the facts and circumstances of the case and in law, the Dispute Resolution Panel (DRP) is justified in has erred in deleting the addition made by the AO on account of disallowance u/s 14A of the Income Tax Act, 1961 (Act) amounting to Rs. 1,34,19,838/ on the ground that no exempt income had been earned during the year?

2. Whether on the facts and circumstances of