A recent complaint filed by the Income Tax Department against Newslaundry, its directors, valuers, and stockholders was dismissed as unjustified by a Metropolitan Magistrate in Delhi.
The CEO and Managing Director of the company, Abhinandan Sekhri, a partnership Chartered Accountancy firm, and others were accused of criminally conspiring to evade taxes by issuing shares based on a phoney valuation report that failed to account for the company’s losses in prior assessment years, according to the complaint made by an Income Tax officer.
Additional Anurag Thakur, Chief Metropolitan Magistrate at the Tis Hazari Court, found that Newslaundry’s procedure for valuing the shares was appropriate.
The Court decided that the valuation report was accurate, in compliance with the rules, and free of any significant flaws. In light of its conclusion that no crime or conspiracy had been committed, the case was dismissed as being without merit.