HC dismisses plea for stay on income tax demand

NEW DELHI: The Delhi High Court has dismissed a plea by news portal NewsClick seeking a stay on the income tax demand during pendency of appeal before the Commissioner of Income Tax (Appeals).

A bench of Acting Chief Justice Manmohan and Justice Mini Pushkarna said the news portal has not been able to make out a prima facie case in its favour and added that the petitioner has “a lot to answer” in the appeal before the Commissioner of Income Tax (Appeals).

The High Court said 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. NewsClick has approached the High Court challenging the orders of November 3, 2023 and February 20, 2023 passed by the Income Tax Department. NewsClick founder Prabir Purkayastha and Human resources head Amit Chakraborty are lodged under judicial custody in an anti-terror law Unlawful Activities (Prevention) Act (UAPA) case registered by Special Cell of Delhi Police for allegedly receiving money to spread pro-China propaganda.