Digital News Portal NewsClick Withdraws Plea from Supreme Court and Will Approach ITAT

The digital news portal NewsClick has made a significant decision regarding its legal battle against income tax assessment notices. On Monday, the portal withdrew its plea before the Supreme Court, challenging two income tax assessment notices against it. NewsClick announced that it will now move to the Income Tax Appellate Tribunal (ITAT) to seek appropriate relief.

The decision to withdraw the case from the top court came after the Income Tax department had passed a final order with regard to the said notices. NewsClick expressed its intention to proceed to the tribunal for relief, leading to the bench comprising Justice BV Nagarathna and Justice Augustine George Masih allowing NewsClick to withdraw its petition. It was noted that the ITAT will proceed to hear the matter, including applications for early hearing and interim relief.

In response to the developments, NewsClick confirmed that the Income Tax department had already passed orders in the case, prompting the portal to request the court for withdrawal in order to approach the tribunal for further hearing.

This move follows NewsClick’s previous legal action against the Delhi High Court, which had rejected its petition challenging the tax assessment notices issued on November 3 and February 30 in 2023. The High Court’s rejection was based on observations that the news portal had many questions to answer around its financial dealings, and there was no prima facie case in favor of NewsClick.

Subsequently, the news portal filed a special leave petition in the apex court against the high court order. The top court had then requested the Commissioner of the Central Income Tax Circle to file a response in the matter.

Furthermore, in February 17, a Delhi court extended the judicial custody of NewsClick founder-editor Prabir Purkayastha and Human Resources head Amit Chakravarty. This decision stemmed from a case lodged under the provisions of the UAPA over allegations that the media outlet received money to spread pro-China propaganda.

The challenges faced by NewsClick intensified after raids were conducted in October 2023 across 88 locations in Delhi and seven in other states. These raids resulted in the seizure of around 300 electronic gadgets from the offices of NewsClick and the residences of the journalists who were examined.

The withdrawal of the plea from the Supreme Court and the decision to approach the ITAT mark pivotal developments in NewsClick’s legal battle. As the portal navigates this intricate legal landscape, it remains to be seen how this transition will shape the future trajectory of this digital news platform.