Delhi HC dismisses news portal plea challenging Income tax orders

The Delhi High Court rejected the News Portal NewsClick appeal contesting the Income Tax Department’s orders dated November 3 and February 20, stating that it was unable to establish a prima facie case in its favor. The petitioner’s claim of financial stringency based on its balance sheet also inspires no confidence, the bench of Justice Manmohan and Justice Mini Pushkarna said in passing the order recently, as the Assessing Officer claims the accounts have not been properly maintained. The bench stated that, to put it mildly, the petitioner has “a lot to answer” in the appeal.

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 Attorney Devdutt Kamat represented the petitioner in court, arguing that the decision to halt the demand while an appeal is pending must be made sensibly, based on pertinent evidence, and with appropriate consideration. It cannot be made arbitrarily, capriciously, or based on unrelated factors. He claims that the contested orders are arbitrary, were issued mechanically, and exhibit total lack of mental application—all of which are flagrant violations of this mandate.