"Delhi High Court Provides Relief to Centre for Policy Research, Puts a Hold on Income Tax Proceedings"
The Delhi High Court, in a recent development, has granted a stay on the income tax proceedings initiated against the esteemed think tank Centre for Policy Research (CPR). The court's decision came on May 24 after CPR filed a plea against the notices issued by the Income Tax (IT) department under Sections 148A(b) and 148 of the Income Tax Act. Justices Rajiv Shakdher and Girish Kathpalia, constituting a Division Bench, ordered the stay on the reassessment proceedings, expressing the need for a thorough examination of the matter. The court also observed that the amended Section 149 of the Act may not be applicable in this case. The interim order suspends the proceedings until further directions from the court. The next hearing is scheduled for November 22. CPR, a think tank focused on researching India's 21st-century challenges, has been actively involved since 1973, with Meenakshi Gopinath serving as its head and Yamini Aiyar as its President and Chief Executive. Notable individuals such as former foreign secretary Shyam Saran and Senior Advocate Shyam Divan are among its governing board members. Earlier, the Central government had suspended CPR's Foreign Contribution Regulation Act (FCRA) application in February 2023. The tax reassessment pertains to the assessment year 2016-17 and was initiated following a survey conducted by the IT authorities at CPR premises in September last year. Senior Advocate Arvind P Datar, along with a team of lawyers, represented CPR and argued that the authorities failed to provide the complete survey report, violating principles of natural justice. Additionally, they contended that the amended Section 149 of the Act, despite coming into force on April 1, 2022, should not be applied to the petitioner since the transaction relates to the assessment year 2016-17. However, the IT department asserted that the information obtained post the survey indicates the possible escapement of taxable income. The Court noted that the entire survey report had not been submitted to CPR, with only a relied-upon portion provided by the IT department. Acknowledging the need for further consideration, the Bench issued an interim order halting the proceedings and issued notice to the IT department.
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TAGS: Delhi High Court stay income tax proceedings Centre for Policy Research CPR plea notices Income Tax Act Division Bench Justices Rajiv Shakdher Girish Kathpalia reassessment proceedings Section 148A(b) Section 148 examination amended Section 149 interim order suspension Foreign Contribution Regulation Act FCRA assessment year 2016-17 survey IT authorities Senior Advocate Arvind P Datar complete survey report violation of principles of natural justice transaction IT department taxable income interim order November 22 Meenakshi Gopinath Yamini Aiyar Shyam Saran Senior Advocate Shyam Divan Central government think tank research.
