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NewsClick withdraws petition challenging Income Tax assessment notices, seeks relief from ITAT

NewsClick withdraws petition challenging Income Tax assessment notices, seeks relief from ITAT

In a recent development, online news portal NewsClick has opted to withdraw its petition before the Supreme Court, challenging income tax assessment notices issued against it. The decision was made with the intention of pursuing relief through the Income Tax Appellate Tribunal (ITAT). This move follows a series of legal proceedings initiated by NewsClick in response to the income tax notices served to the organization.

The withdrawal of the petition was permitted by a bench of Justices BV Nagarathna and Augustine George Masih. The bench emphasized that the ITAT is now tasked with the responsibility of hearing the matter, including any applications for early hearing and interim relief, in accordance with the law.

NewsClick's petition to the Supreme Court stemmed from two income tax assessment orders dated November 3, 2023, and February 20, 2023. Previously, in November, the Delhi High Court had dismissed NewsClick's plea related to the matter. The High Court's decision underscored concerns regarding NewsClick's financial dealings, stating that the organization had much to address, with no apparent case in favor of the news portal.

Following the High Court's ruling, NewsClick appealed to the Supreme Court, seeking redress. In January, the Supreme Court sought a response from the Commissioner of the Central Income Tax Circle regarding the matter.

During the recent proceedings, NewsClick's counsel informed the Court that the Income Tax department had issued a final order concerning the notices under question. In light of this development, NewsClick expressed its intention to seek relief from the ITAT. Moreover, NewsClick highlighted the challenges it faces in meeting its obligations, particularly regarding the payment of employee wages.

Granting NewsClick the liberty to withdraw its appeal, the bench acknowledged the organization's decision and the circumstances prompting it.

Senior Advocates Kapil Sibal and Devadatt Kamat, alongside advocates Rohit Sharma, Nikhil Purohit, Jatin Lalwani, Rajesh Inamdar, and Anubhav Kumar, represented NewsClick during the proceedings. Additional Solicitor General N Venkataraman appeared on behalf of the Income Tax Department.

Case: PPK Newsclick Studios Pvt Ltd vs. Principal Chief Commissioner of Income Tax Central Delhi and Anr.


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