The Delhi High Court in the case Oxfam India Versus Deputy Commissioner of Income Tax observed and has stayed the income tax reassessment proceedings which are being initiated against the Oxfam India.
The bench comprising of Justice Rajiv Shakdher and Justice Girish Kathpalia in the case observed and has stated that the counter-affidavit will be filed within the next six weeks. Thereto, the Rejoinder, if any, needs to be filed within the period of five days which being before the next date of hearing. Thus, there shall be a stay on the continuation of the reassessment proceeding till further directions of the court.
Therefore, the assessee or appellant has challenged the reassessment notice as stated under Section 148A(b) of the Income Tax Act, 1961.
In the present case, the petitioner was engaged in the litigation activities that were violative of Section 8(1) of the Foreign Contribution (Regulation) Act, 2010. Thus, it had received suspicious contributions from foreign nationals and it failed to recognise as revenue Rs. 15,09,85,211, which was being received as advances against the future projects.
The petitioner in the case has not applied 85% of its total receipts towards its objects, as required under the provisions of the Income Tax Act, 1961.
It has also been contended by the petitioner in the plea that the charge levelled against it, that it has received contributions from foreign nationals that were suspicious, is misconceived as the details and names of contributors were provided.
Further, the plea stated that the Assessing Officer’s, AO assertion that Rs. 15,09,85,211/- should have been recognised as income is completely misconceived, as these were advances that had to be utilised for future objects and thus, it was not income that arose in the period in issue.
The court in the case observed and has noted that the matter required further examination.
Accordingly, the court listed the matter for further consideration on November 22, 2023.
The counsel, Arvind P. Datar, Sachit Jolly, Disha Jham and Soumya Singh appeared for the petitioner.
The counsel, Vipul Agrawal, Gibran Naushad, Sakshi Shairwal represented the respondent.
