The Income Tax Department has raised serious concerns over the funding of Indian NGOs and Trusts by foreign entities, alleging that such financial support aimed to obstruct public projects and undermine India’s economic interests. The department conveyed these assertions to the Supreme Court while opposing a plea filed by the NGO Environics Trust, challenging a notice issued for the reassessment of tax returns.
In an affidavit submitted to the apex court, the Income Tax Department disclosed that its investigation wing had initiated a survey against Environics Trust on September 7, 2022. Following a thorough examination of the evidence, it concluded that the NGO’s activities did not align with its stated objectives and appeared to be funded significantly by foreign entities. Moreover, the department alleged that the trust was orchestrating protests against various development projects in India, utilising funds sourced from abroad, reported Indian Express.
The Supreme Court bench, comprising Justices Sanjiv Khanna and Dipankar Datta, was hearing Environics Trust’s appeal against the Delhi High Court’s order dated November 8, 2023.
The Petitioner Environics Trust challenged the order issued by the Respondent / Revenue Department under Section 148A(d) of the Income Tax Act, under a show cause notice ( SCN ) issued under Section 148A(b) of the IT Act before Delhi High Court.
The Delhi High Court observed that the “Petitioner has unquestionably suppressed material facts in relation to the cancellation of its registration under Section 12A, 12AA and 12AB of the IT Act.” Subsequently, dismissed the NGO’s challenge to the reassessment notice issued by the Income Tax Department under Section 148 of the Income Tax Act, 1961.
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