HC dismisses NewsClick's plea for stay on income tax demand
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New Delhi (PTI): 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).
"In the present case, the assessing officer in the assessment order has given a number of cogent findings against the petitioner. In fact, the assessing officer after analysing a number of relevant facts has virtually held that the transaction between the petitioner and the foreign entity was based on reverse engineering'," the bench said in an order passed on November 29 and made available on the court's website on Monday night.
It further said, "keeping in view the aforesaid findings, this court is of the view that the petitioner has not been able to make out a prima facie case in its favour. To put it mildly, the petitioner has a lot to answer' in the appeal".
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.
"Accordingly, the writ petition is dismissed. However, this court clarifies that the findings given by this court are only in the context of the present writ proceedings and shall not prejudice either of the parties at the stage of the appellate proceedings," the bench made it clear.
NewsClick has approached the high court challenging the orders of November 3, 2023 and February 20, 2023 passed by the Income Tax Department.
By these orders, the IT Department had dismissed NewsClick's application for stay of demand during the pendency of the appeal against the assessment order of December 30, 2022.
The portal also prayed for stay of demand during the pendency of the appeal before the Commissioner of Income Tax (Appeals).
The counsel for the petitioner argued before the high court that the discretion to stay the demand during the pendency of an appeal must be exercised judiciously and reasonably based on relevant grounds with due application of mind.
He contended that it must not be exercised arbitrarily or capriciously or based on irrelevant considerations.
The lawyer contended that there was complete violation of this mandate as the orders are arbitrary in nature, have been passed mechanically and suffer from complete non-application of mind.
It was argued that the orders failed to consider that NewsClick has a strong prima facie case on merits and that there is no requirement for a pre-deposit for the purposes of granting stay of deposit under Section 220(6) of the Income Tax Act, 1961.
On this, the bench said undoubtedly, the power vested under Section 220(6) of the Act is discretionary and it is not mandatory to pre-deposit 20 per cent of the assessed amount to obtain stay of deposit at the stage of filing the appeal before the Commissioner of Income Tax (Appeals).
However, the assessing officer has given several cogent findings against the portal, it noted.
The assessing officer had observed that the amount of funds to be received by NewsClick from M/s Justice and Education Fund was "predetermined without any specifications about the services".
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.
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Trump says EU has until July 4 to approve last year's trade deal or it will face higher tariffs
Washington (AP): President Donald Trump has said in a social media post that goods from the European Union would face higher tariff rates if the 27-member bloc fails to approve last year's trade framework by July 4.
The announcement on Thursday appeared to be a deadline extension after the president said last Friday that EU autos would face a higher 25 per cent tariff starting this week. Trump made the updated announcement after what he described as a "great call" with European Commission President Ursula von der Leyen.
Still, the US president was displeased that the European Parliament had yet to finalize the trade arrangement reached last year, which was further complicated in February by the US Supreme Court ruling that Trump lacked the legal authority to declare an economic emergency to impose the initial tariffs used to pressure the EU into talks.
"A promise was made that the EU would deliver their side of the Deal and, as per Agreement, cut their Tariffs to ZERO!" Trump posted. "I agreed to give her until our Country's 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels."
It was unclear from the post whether Trump was implying that the tariff rates would jump on all EU goods or the increase would only apply to autos.
His latest statement indicates he might be backing away from his earlier threat on EU autos by giving the European Parliament several more weeks to approve the agreement.
Under the original terms of the framework, the US would charge a 15 per cent tax on most goods imported from the EU.
But since the Supreme Court ruling, the administration has levied a 10 per cent tariff while investigating trade imbalances and national security issues, aiming to put in new tariffs to make up for lost revenues.
