The Delhi High Court recently stayed the Income Tax (IT) reassessment proceedings initiated against the non-profit group, Oxfam India. .A division bench of Justices Rajiv Shakdher and Girish Kathpalia passed the interim order on August 4, 2023, and issued notice to the IT department on a plea by Oxfam challenging the income tax proceedings.“A counter-affidavit will be filed within the next six (6) weeks. Rejoinder thereto, if any, will be filed at least five days before the next date of hearing… In the meanwhile, there shall be a stay on the continuation of the reassessment proceeding, till further directions of the court,” the Court ordered..The IT proceedings were initiated against Oxfam following a survey at their office on September 7, 2022. Notice was issued to Oxfam under Section 148A(b) of the IT Act on March 29, 2023.The notice said that Oxfam was engaged in litigation activities in violation of Section 8(1) of the Foreign Contribution (Regulation) Act (FCRA) and that it had received contributions from foreign nationals. It was further alleged that Oxfam had failed to recognise over ₹15 crores as revenue, which amount is stated to have been received as an advance against future projects. The authorities also claimed that the NGO did not apply 85% of its total receipts towards its objects in the relevant period, as required under the IT Act provisions applicable to charitable or non-profit organisations.Pursuant to this, an order was passed on April 19 under Section 148A(d) and a consequential notice under Section 148 was issued on the same day..However, Oxfam argued that the reassessment proceedings related to the assessment year 2016-17, and, therefore, the same is barred by limitation. It was further stated that the IT department's survey report was not shared with Oxfam. The NGO added that an amendment brought in Section 149(1)(b) of the Income Tax Act, pursuant to the Finance Act, 2022, would not be applicable to it, as that amendment would be applicable only from the year 2022-23..After considering rival contentions, the High Court said that the matter required further examination. The case will be considered next on November 22, 2023..Senior Advocate Arvind P Datar along with advocates Sachit Jolly, Disha Jham, and Soumya Singh appeared for Oxfam.The Income Tax department was represented through Senior Standing Counsel Vipul Agrawal as well as standing counsel Gibran Naushad and Sakshi Shairwal..[Read Order]
The Delhi High Court recently stayed the Income Tax (IT) reassessment proceedings initiated against the non-profit group, Oxfam India. .A division bench of Justices Rajiv Shakdher and Girish Kathpalia passed the interim order on August 4, 2023, and issued notice to the IT department on a plea by Oxfam challenging the income tax proceedings.“A counter-affidavit will be filed within the next six (6) weeks. Rejoinder thereto, if any, will be filed at least five days before the next date of hearing… In the meanwhile, there shall be a stay on the continuation of the reassessment proceeding, till further directions of the court,” the Court ordered..The IT proceedings were initiated against Oxfam following a survey at their office on September 7, 2022. Notice was issued to Oxfam under Section 148A(b) of the IT Act on March 29, 2023.The notice said that Oxfam was engaged in litigation activities in violation of Section 8(1) of the Foreign Contribution (Regulation) Act (FCRA) and that it had received contributions from foreign nationals. It was further alleged that Oxfam had failed to recognise over ₹15 crores as revenue, which amount is stated to have been received as an advance against future projects. The authorities also claimed that the NGO did not apply 85% of its total receipts towards its objects in the relevant period, as required under the IT Act provisions applicable to charitable or non-profit organisations.Pursuant to this, an order was passed on April 19 under Section 148A(d) and a consequential notice under Section 148 was issued on the same day..However, Oxfam argued that the reassessment proceedings related to the assessment year 2016-17, and, therefore, the same is barred by limitation. It was further stated that the IT department's survey report was not shared with Oxfam. The NGO added that an amendment brought in Section 149(1)(b) of the Income Tax Act, pursuant to the Finance Act, 2022, would not be applicable to it, as that amendment would be applicable only from the year 2022-23..After considering rival contentions, the High Court said that the matter required further examination. The case will be considered next on November 22, 2023..Senior Advocate Arvind P Datar along with advocates Sachit Jolly, Disha Jham, and Soumya Singh appeared for Oxfam.The Income Tax department was represented through Senior Standing Counsel Vipul Agrawal as well as standing counsel Gibran Naushad and Sakshi Shairwal..[Read Order]
