Newsclick Row: HC dismisses news portal plea challenging income tax orders

The Delhi High Court has dismissed the News Portal NewsClick plea challenging the orders dated November 3 and February 20 passed by the Income Tax Department and said it has not been able to make out a prima facie case in its favour.

The bench of Justice Manmohan and Justice Mini Pushkarna, while passing the order recently, said that 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. To put it mildly, the petitioner has a 'lot to answer' in the appeal, said the bench.

Newclick recently approached the Delhi High Court, challenging the orders dated November 3rd and February 20th, passed by the respondents, whereby 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, has been dismissed.

The petitioner had further prayed for a stay of demand during the pendency of the petitioner's appeal before the Commissioner of Income Tax (Appeals).

Senior Advocate Devdutt Kamat appeared for the petitioner and submitted that the discretion to stay the demand during the pendency of an appeal has to be exercised judiciously and reasonably, based on relevant grounds, with due application of mind, and must not be exercised arbitrarily, capriciously or based on irrelevant considerations. He states that in complete violation of this mandate, the impugned orders are arbitrary, have been passed mechanically, and suffer from complete non-application of mind.

Recently, the Delhi Police special cell arrested NewsClick's founder and Editor-in-Chief Prabir Purkayastha and HR Head Amit Chakravarty under Sections IPC and UAPA.

The Delhi Police's Special Cell, in its FIR against news web portal NewsClick's founder and Editor-in-Chief Prabir Purkayastha, stated that the People's Dispatch Portal, owned and maintained by M/S PPK Newsclick Studio Pvt Ltd, has been used for intentionally peddling false narratives through paid news in lieu of crores of rupees of illegally routed foreign funds as part of a conspiracy.

The Delhi Police FIR further stated that foreign funds in crores have been infused illegally in India by Indian and foreign entities inimical to India in pursuance of a conspiracy with the intention to disrupt the sovereignty and territorial integrity of India, to cause disaffection against India and to threaten the unity, integrity, and security of India.

Foreign funds in crores have been infused illegally in India by Indian and foreign entities inimical to India in pursuance of a conspiracy with the intention to disrupt the sovereignty and territorial integrity of India, to cause disaffection against India and to threaten the unity, integrity, and security of India, as stated in the FIR.