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The Delhi High Court in its impugned order said that, as highlighted by the assessing officer, NewsClick's plea of financial stringency lacked confidence due to inadequately maintained accounts
A division bench of the Supreme Court of India today issued notice in the plea by NewsClick seeking a stay on the income tax demand.
The instant SLP was filed against a recent Delhi High Court order rejecting the online news portal's plea.
Today, the bench of Justices BV Nagarathna and Augustine George Masih has sought the response of the Commissioner of the Central Income Tax Circle and listed the plea after two weeks.
Senior Advocates Kapil Sibal and Devadatt Kamat appeared on behalf of the news portal today.
In an order issued on November 29, a division bench of the High Court comprising Acting Chief Justice Manmohan and Justice Mini Pushkarna had stated that NewsClick had substantial explanations to provide regarding its financial transactions, as highlighted in the assessing officer's order.
The bench concluded that NewsClick failed to establish a prima facie case in its favor. The court's order read, "Keeping in view the aforesaid findings, this Court is of the view that the petitioner has not been able to make out a prima facie case in its favor. To put it mildly, the petitioner has a 'lot to answer' in the appeal… Accordingly, the writ petition is dismissed."
NewsClick had approached the high court challenging orders dated November 3, 2023, and February 20, 2023, passed by the Income Tax Department. These orders rejected NewsClick's application for a stay of demand during the appeal against the assessment order dated December 30, 2022. NewsClick also sought a stay of demand during the appeal before the Commissioner of Income Tax (Appeals).
A division bench of the Supreme Court had earlier issued notice in the plea by NewsClick founder Prabir Purkayastha and HR department head Amit Chakraborty challenging the Delhi High Court's recent dismissal of their plea againts arrests made in a UAPA case.
A single judge bench of Justice Tushar Rao Gedela of the Delhi High Court on Friday, October 13, had "dismissed" the pleas filed challenging the arrest of Purkayastha and Chakraborty.
SGI Mehta had contended that a huge sum of Rs. 75 crore came from a person in China, and the purpose was to ensure that the stability and integrity of the country were compromised.
Case Title: PPK Newsclick Studios Pvt Ltd vs. Principal Chief Commissioner of Income Tax Central Delhi and Anr.
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