NewsClick withdraws Supreme Court plea, turning to ITAT for relief in the income tax dispute. The move highlights challenges faced by media entities and carries implications for press freedom in India.
NewsClick, the online news platform, has opted to withdraw its petition from the Supreme Court, shifting its focus to address the disputed income tax assessment notices through the Income Tax Appellate Tribunal (ITAT). This decision represents a significant development in the ongoing legal dispute between PPK Newsclick Studios Pvt Ltd and the Principal Chief Commissioner of Income Tax Central Delhi and Anr, underscoring the intricacies involved in tax assessments.
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The decision came to light during a session presided over by Justices BV Nagarathna and Augustine George Masih, who not only allowed NewsClick to withdraw its plea but also emphasized that the ITAT should expedite the hearing process. This includes considering applications for an early hearing and interim relief, all within the framework of the law. The justices’ directive underscores the judiciary’s approach to ensuring that such matters are resolved timely and efficiently, providing a clear pathway for NewsClick to pursue its grievances.
NewsClick’s legal challenge was initially sparked by two income tax notices dated November 3, 2023, and February 20, 2023. The Delhi High Court, in November, had dismissed the portal’s plea, casting a shadow over its financial transactions and suggesting that NewsClick had substantial questions to answer regarding its financial dealings. This rejection by the High Court was a significant blow, prompting NewsClick to escalate the matter to the Supreme Court in search of a favorable outcome.
The Supreme Court’s involvement began in January when it requested a response from the Commissioner of the Central Income Tax Circle regarding the dispute.
During the proceedings, NewsClick’s legal representation, led by Senior Advocates Kapil Sibal and Devadatt Kamat, along with a team of advocates including Rohit Sharma, Nikhil Purohit, Jatin Lalwani, Rajesh Inamdar, and Anubhav Kumar, informed the court of the final order passed by the IT department concerning the notices. They highlighted the portal’s intention to approach the tribunal for relief, especially given the operational challenges NewsClick faces, including difficulties in disbursing employee wages.
The court’s decision to grant NewsClick the liberty to withdraw its appeal reflects a nuanced understanding of the legal and financial predicaments faced by media companies under scrutiny. This gesture also points to the judiciary’s role in facilitating a fair examination of disputes within the specialized forums designed for such purposes.
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Representing the Income Tax Department, Additional Solicitor General N Venkataraman’s involvement signifies the government’s active engagement in the case, ensuring that the matters of tax compliance and legal accountability are thoroughly addressed.
NewsClick’s tax case before ITAT has wider implications for press freedom and financial responsibility in India.
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