Delhi HC Dismisses NewsClick Plea Challenging Income Tax Orders

The Delhi High Court has dismissed NewsClick plea challenging the orders dated November 3 and February 20 issued by the Income Tax Department, stating that a prima facie case in its favor has not been established.

A bench of Justice Manmohan and Justice Mini Pushkarna, recently issued the order, asserting that the petitioner’s claim of financial stringency, based on its balance sheet, lacks credibility. The Assessing Officer contends that the accounts have not been properly maintained, indicating that the petitioner has a ‘lot to answer’ in the appeal, as per the bench’s observation.

NewsClick had recently approached the Delhi High Court to challenged the orders dated November 3rd and February 20th. These orders, issued by the respondents, dismissed the petitioner’s application for a stay of demand during the pendency of the appeal before the Commissioner of Income Tax (Appeals) against the assessment order dated December 30th, 2022.

The petitioner sought a stay of demand during the pendency of their appeal before the Commissioner of Income Tax (Appeals). Senior Advocate Devdutt Kamat represented the petitioner, arguing that the discretion to stay the demand during the appeal must be exercised judiciously and reasonably, considering relevant grounds. He emphasized that the impugned orders were arbitrary, passed mechanically, and displayed a complete non-application of mind, violating the mandated criteria.

Notably, the Delhi Police’s Special Cell had recently arrested Prabir Purkayastha, founder and Editor-in-Chief of NewsClick, along with HR Head Amit Chakravarty under Sections IPC and UAPA. The FIR against Purkayastha stated that the People’s Dispatch Portal, owned by M/S PPK Newsclick Studio Pvt Ltd, had been used for intentionally disseminating false narratives through paid news, involving crores of rupees of illegally routed foreign funds as part of a conspiracy.

The FIR also alleged that illegal foreign funds in crores had been infused in India by Indian and foreign entities inimical to the country, with the intention to disrupt its sovereignty, territorial integrity, and cause disaffection. The FIR emphasized that this was part of a conspiracy to threaten the unity, integrity, and security of India.