Delhi HC rules against Income Tax department in Ricky Martin case

New Delhi: A letter written by singer Ricky Martin has left the income tax department red-faced.

According to a report, the Latin singer has claimed in his letter that the IT department ‘extracted’ a statement against Sony Music (India) by threatening him after a concert in Delhi in 1998.

The letter was written to the Deputy Commissioner of Income Tax in 1999, and has played a crucial role in the Delhi High Court dismissing proceedings initiated by the department against Sony Music.

Martin had claimed in his letter that IT officials extracted the statement to impose a tax liability on Sony Music, even though he had not had any contract with the company for his live performance or for sale of audio cassettes in India.

Martin said he had been forced to make a statement under duress on December 7, 1998 in Hotel Radisson in Delhi. He claimed the IT officials refused to let him leave India unless he signed the statement. “I was coerced and forced to sign this statement on oath and was overwhelmed by the duress exercised by you on me,” he wrote. Martin also urged the department to close the matter since he did not have any contract with Sony.

The Delhi High Court allowed a petition moved by Sony based on these remarks. The IT department was unable to rebut Martin’s accusations, and nor did they produce any other evidence to link the revenues of the live concert with the music company.

The court held that the writ petition had been pending since 1999 and the IT department, despite having had enough time to place on record the outcome of the investigation, did not do so. The court also noted that Sony Music has been able to show that DNA Networks was the organiser of the concert on December 6, 1998, and that 85 per cent of the profit from the show was given to charity.

Based on these observations, the court quashed the impugned summons, notices, letters and orders, and told the IT Department to stop harassing the petitioner.