Supreme Court Declines Environmental Lawyer’s Appeal Against High Court Ruling on Income Tax Reassessment
By: Admin
Date: August 13, 2024
Categories: Income Tax News, News
Reading Time: 4 Min
The Supreme Court declined to hear an appeal from a prominent environmental lawyer. He challenged the Delhi High Court’s decision to reopen his income tax assessment for 2020-21. Previously, the High Court had upheld the reassessment order under section 148A(d) of the Income Tax (I-T) Act.
High Court Ruling
On May 29, 2024, the Delhi High Court rejected the lawyer’s plea against the reassessment order under section 148A of the I-T Act. This section requires an Assessing Officer (AO) to notify a taxpayer if there is information suggesting undisclosed income. It also mandates that the AO provides the taxpayer with an opportunity to explain before issuing a notice.
Survey and Findings
Authorities conducted a survey under section 133A of the I-T Act on September 7, 2022. They found that ‘Legal Initiative for Forest and Environment’ (LIFE), managed by the lawyer, had received Rs 4.95 crore from M/s EarthJustice, USA, for the 2020-21 assessment year. Additionally, prior to this, the lawyer’s proprietorship, M/s Lawyers Initiative for Forest & Environment, received Rs 22 crore in professional fees from EarthJustice over five years.
Allegations
The I-T department claims that the lawyer used EarthJustice funds for purposes beyond the approved objectives of LIFE. These included litigation against coal power plants in India, allegedly disguised as professional fees. Furthermore, the Solicitor General argued that the funds were not for legitimate professional services.
Supreme Court’s Decision
The Supreme Court chose not to entertain the appeal, thereby allowing the High Court’s decision to stand. The Court suggested that the lawyer should present his arguments before the statutory authorities.
CBI Investigation
In April of the previous year, the CBI registered an FIR against the lawyer for alleged violations of the Foreign Contribution (Regulation) Act (FCRA). The Union Home Ministry filed the complaint, accusing LIFE of using EarthJustice funds to obstruct Indian coal projects, which they claim violated FCRA regulations. The lawyer, who has received Sweden’s Right Livelihood Award, continues to face scrutiny due to these allegations.
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