Foreign Funding to NGOs an Attempt to Stall Public Projects in India: I-T Dept Tells SC

New Delhi: The Income Tax (I-T) Department on Monday told the Supreme Court that there are 'concerted efforts' by foreign entities to fund NGOs based in India with an aim to stall public projects and affect country's economic interests. 

Opposing the plea moved by NGO Environics Trust challenging the notice issued to it by the department for tax reassessment proceedings, the I-T department highlighted concerns about the foreign funds being given to certain NGOs- such as Centre for Policy Research (CPR) and Oxfam India, to obstruct crucial public projects that are in national interest.

In an affidavit filed before the apex court, represented through solicitor general Tushar Mehta, the I-T department claimed its probe wing had initiated a analysis task against the NGO on September 7, 2022. 

“After analysing the material and based on independent application of mind to the evidence, it was found that its activities are neither genuine nor being carried out as per the objects of the Trust," it said.

SC Allows Reassessment 

The apex court gave its nod to the I-T department to launch the reassessment of tax returns filed by the NGO, Environics Trust, which is accused of organising staged protests against developmental projects, but said no final orders shall be passed.

The SC bench comprising justices Sanjiv Khanna and Dipankar Datta was hearing an appeal of the NGO challenging the November 8 order of last year of the Delhi High Court and said the NGO shall cooperate with the ordered probe.

"The department can continue with the reassessment/assessment proceedings but no final orders shall be passed without prior permission of the court," the bench ordered. 

The order came after the I-T department claimed that trust's activities in the public domain appears to be charged up by foreign entities to create turbulence in public projects in India, "which though has not been a factor considered while issuing the notice under Section 148 of the Income Tax Act, it would be a relevant factor to support the finding of the Hon’ble High Court that this is not a fit case for exercise of jurisdiction under Article 226”.

The Environist NGO Trust claims to be working on research of environmental issues and human behaviour in India.