The Madras High Court was on Tuesday apprised by the Director General of Income Tax (Investigation) that wherever concealment of income is detected, exemption or approval granted to the charitable educational institutions concerned is withdrawn. Recording the submission of the tax department in an affidavit, the HC closed a PIL petition. The HC posed questions to the department on a PIL, seeking to consider revoking exemption granted under the Income Tax Act to charitable organisations if they were found violating rules and if fraudulent acts were committed.
The high court, in its July 4, 2016 order, had said that the only aspect of concern was whether the benefit for charitable educational institutions should continue if income concealment was found or large amounts of cash was recovered during raids.
“In such a situation, the question arises whether there should be also cancellation/revocation of the Essentiality Certificate/ No Objection Certificate.”
To this poser, the tax department in its counter affidavit had said “under Section 10 (23C) and registration granted under Section 12 AA (3) are withdrawn and appropriate proceedings have been launched against the offending parties of the Charitable Educational Institutions.”
The department’s counter affidavit today made it clear that after prima facie coming to the conclusion that there was concealment of income, the same is communicated to the approval granting authority.
- Home Minister Rajnath Singh Assures Safety Of All Tourists Stranded On Havelock Island
- Government To Waive Service Tax On Debit, Credit Card Transactions Of Up To Rs 2,000
- President Pranab Mukherjee Criticises Parliament Disruptions Over Demonetisation
- Pakistan International Airlines Flight Carrying Over 40 Passenger On Board Crashes
- Shah Rukh Khan On Raees Clash With Kaabil: It’s Impossible To Have A Solo Release In India
- US-President Elect Donald Trump Named TIME’s Person Of The Year 2016
- O. Panneerselvam: 10 Things You Need To Know
- PM Narendra Modi Slams Opposition For Not Letting Parliament Function
- Nawazuddin Siddiqui On Working In Raees: Was Nervous To Shoot With Shah Rukh Khan
- Bathinda Dancer Murder: Video Showing Accused Opening Fire At Marriage
- 5 Lesser Known Facts About Sasikala Natarajan
- Congress Leader Shashi Tharoor’s Delhi Home Burgled: Here’s What Happened
- Reserve Bank Of India Keeps Repo Rate Unchanged Post Demonetisation
- Bigg Boss 10 Dec 06 Review: Swami Om Pees In Kitchen
- Lenovo k6 Power Video Review
Such an authority, after giving reasonable opportunity of showing cause to the aggrieved, is empowered to rescind the notification or withdraw the approval to charitable institutions in question, it said.
It may result in denial of exemption and consequent taxing of incomes at the hands of the institution at regular rates with consequential penal provisions, the department said, which the HC recorded.