The Bombay High Court recently stayed Income-Tax Department show-cause notices to six Tata Trusts on why their registrations, under Section 12A of the Income-tax Act, should not be cancelled.
Issuing the interim stay, a bench, comprising Justice M.S. Sanklecha and Justice S.K. Shinde, asked the IT authorities to file a reply on their jurisdiction to issue such show-cause notices.
Arguing for the Tata Trusts, Darius J. Khambata submitted that the six Trusts concerned had themselves surrendered their tax registrations way back in 2015.
“The matter pertains only to registrations of the Trusts under the Income-Tax Act. The Trusts continue to be registered with the Charity Commissioner for carrying out charitable activities,” said a Tata Trust statement. The matter will next be heard on June 15, 2018.