NewsClick, an Online news portal has taken the legal fight to a higher level by taking the case to the Supreme Court, contesting tax notices that the Income Tax (IT) department has sent out, and pressing for the stay of the related tax demand. The online news portal is requesting an ad-interim ex-parte stay of the High Court ruling and the tax demand in a Special Leave Petition (SLP) that it filed with the Supreme Court.
The two-judge bench, led by Justice BV Nagarathna and also including Justice Augustine George Masih, has taken cognizance of the case and issued a notice, mandating a detailed response from the IT Department within a two-week period following the hearing of NewsClick’s plea.
In its directive, the Supreme Court has specifically instructed the Commissioner of the Central Income Tax Circle to furnish a comprehensive response within the stipulated timeframe and has scheduled further proceedings two weeks from now to evaluate the developments. NewsClick’s legal manoeuvre revolves around contesting the income tax assessments dated November 3, 2023, and February 20, 2023.
NewsClick’s journey to the Supreme Court follows the setback it faced in November of the previous year when the Delhi High Court dismissed its plea. The petition has been filed challenging the orders passed by the respondents before the Delhi High Court, whereby the petitioner’s application for stay of demand during the pendency of the appeal before the Commissioner of Income Tax (Appeals) against the assessment order dated 30th December, 2022 has been dismissed. The petitioner further prayed for stay of demand during the pendency of the petitioner’s appeal before the Commissioner of Income Tax (Appeals).
A Division Bench of Acting Chief Justice Manmohan and Justice Mini Pushkarna of Delhi High Court observed that “this Court is of the view that the petitioner has not been able to make out a prima facie case in its favour. To put it mildly, the petitioner has a ‘lot to answer’ in the appeal. The petitioner’s plea of financial stringency based on its balance-sheet also inspires no confidence as according to the Assessing Officer, the accounts have not been properly maintained.”
Read Delhi HC Order: Delhi HC dismisses News click’s Plea seeking Stay of Income Tax Demand During Pendency of Appeal Before Commissioner of Income Tax
The Senior advocates Kapil Sibal and Devadatt Kamat, representing NewsClick, presented the financial strain induced by the tax demands and pre-deposits to the Supreme Court. They underscored the difficulties encountered in meeting employee salary obligations, shedding light on the urgency and gravity of the situation.
The Supreme Court, recognizing the complexities involved, has sought a comprehensive response from the IT Department within the allocated two-week timeframe, indicating the significance and seriousness of the legal proceedings.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
