The Supreme Court of India, after a long vacation of 50 days, has taken up the petition of Newclick against the income tax demand. The apex court issued notice to the income tax department.
A Special Leave Petition was filed by the PPK Newsclick Studio Pvt Ltd on 23rd May 2024 before the apex court. The bench of Justice B.V. Nagarathna and Justice Dipankar Datta take up the first step of this petition by issuing a notice to the department returnable on 22.07.2024.
A writ petition was filed by the media company against the order dated 05 April 2024 passed by the Income Tax Appellate Tribunal while dealing with an application for stay of income tax demand. The ITAT ruled that it did not find a prima facie case and thus did not find any justification to interfere with the impugned recovery proceedings.
The Delhi High Court bench of Justices Yashwant Varma and Purushaindra Kumar observed that “As we go through the same, we find that the ITAT has duly applied its mind to the issue of a prima facie case.” Thus, the court dismissed the writ petition and thus, the stay of income tax demand was also dismissed.
The Newclick filed the writ petition before the Delhi High Court was to stay the arbitrary income tax demand of treating ( JEF ) as “Unexplained Cash Credit” under Section 68 of the Income Tax Act, 1961, raising a demand for INR 14.8 crores after disallowing claimed expenses and taxing the receipts at 60%.
The Senior Advocate Kapil Sibal, the Advocate on Record ( AOR ) Kumar Dushyant Singh, the Senior Advocate Devadatt Kamat and 6 others appeared for the petitioners.
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