Delhi High Court Stays Income Tax Reassessment Proceedings Initiated Against Oxfam India

The Delhi High Court has stayed the income tax reassessment proceedings initiated against Oxfam India.

"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 meantime, there shall be a stay on the continuation of the reassessment proceeding till further directions of the court," the bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed.

The assessee/appellant has challenged the reassessment notice under Section 148A(b) of the Income Tax Act, 1961.

The petitioner was engaged in litigation activities that were violative of Section 8(1) of the Foreign Contribution (Regulation) Act, 2010. It had received suspicious contributions from foreign nationals. It failed to recognise as revenue Rs. 15,09,85,211, which was received as advances against future projects. The petitioner had not applied 85% of its total receipts towards its objects, as required under the provisions of the Income Tax Act, 1961.

The petitioner contended 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.

The petitioner said 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. Therefore, it was not income that arose in the period in issue.

The court noted that the matter required further examination. The case will be considered next on November 22, 2023.

Case Title: Oxfam India Versus Deputy Commissioner Of Income Tax

Citation: 2023 LiveLaw (Del) 682

Date: 04.08.2023

Counsel For Petitioner: Arvind P. Datar, Sachit Jolly, Disha Jham and Soumya Singh

Counsel For Respondent: Vipul Agrawal, Gibran Naushad, Sakshi Shairwal

Click Here To Read The Order