Supreme Court Seeks Income Tax Department's Response In NewsClick Tax Plea

Supreme Court Seeks Income Tax Department's Response In NewsClick Tax Plea

The Supreme Court has asked the Income Tax Department to respond to a petition by NewsClick challenging two income tax notices.

Justices BV Nagarathna and Dipankar Datta's bench also issued notice on the news portal's application seeking interim relief. The plea marks NewsClick's second round of litigation before the apex court after the Delhi High Court rejected its relief plea last November, prompting it to escalate the matter to the Supreme Court.

Earlier this year, NewsClick withdrew its petition from the Supreme Court to approach the Income Tax Appellate Tribunal for relief. However, on April 5, the Tribunal declined to stay the tax demands, a decision subsequently upheld by the Delhi High Court on May 10, leading to the current appeal.

In its initial ruling, the High Court noted significant concerns regarding NewsClick's financial transactions, finding no prima facie case favoring the news portal.

NewsClick's counsel has informed the Supreme Court of the challenges faced in meeting employee wage obligations.