List of Current Affairs

Source: Delhi High Court

Why in News?

A bench of Chief Justice Satish Chandra Sharma and Justice Tushar Rao Gedela rejected a petition by upholding the reassessment proceedings against Enviornics Trust for wrongful application of foreign contribution.

• The Delhi High Court gave this judgment in the case of Enviornics Trust v. The Dept. Commissioner of Income Tax.

What is the Background of Enviornics Trust v. The Dept. Commissioner of Income Tax Case?

• The Petitioner is a registered trust which conducts research & development.
• The Petitioner was granted registration under the Foreign Contribution (Regulations) Act, 1976.
• A survey was conducted by the Respondent under Section 133 of the Income Tax Act, 1961 (IT Act).
• It has been submitted that no incriminating materials were found during the Survey.
• However, the Respondent conducted an enquiry against the Petitioner where Respondent seized books of accounts / financial documents and mobiles phones belonging to the Petitioner Trust related to tax breaches.
• And a consequent notice for reassessment proceedings was issued by the Respondent under Section 148 of the IT Act.

What were the Court’s Observations?

• The Delhi HC held that “The Petitioner has unquestionably suppressed material facts in relation to the cancellation of its registration under Section 12A, 12AA and 12AB of the IT Act.”.
• The SC further said that. “It is a well-settled position of law that an individual seeking to invoke the equitable jurisdiction of a High Court must approach this Court displaying bona fides”.

What is Reassessment Proceeding?

• The Income Tax Department may initiate reassessment proceedings if they have reason to believe that income has escaped assessment.
• This could be due to oversight, omission, incorrect information, or other factors that lead to the underassessment of income.
• The taxpayer is issued a notice by the Income Tax Department, informing them about the intention to reopen the assessment.
• The taxpayer is given an opportunity to provide explanations and submit relevant documents before the reassessment is finalized.
• After considering the taxpayer's response, the assessing officer completes the reassessment, and if necessary, may make adjustments to the tax liability.
• If the taxpayer disagrees with the reassessment, they have the right to appeal the decision to higher authorities, such as the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal.

What is Legal Provision Involved?

Section 148 of the IT Act: Issue of notice where income has escaped assessment

(1) Before making the assessment, reassessment or recomputation under section 147, the Assessing Officer shall serve on the assessee a notice requiring him to furnish within such period, not being less than thirty days, as may be specified in the notice, a return of his income or the income of any other person in respect of which he is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed; and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139.

(2) The Assessing Officer shall, before issuing any notice under this section, record his reasons for doing so.

Source: Hindustan Times

Why in News?

Recently, the Supreme Court has given directions to the Haryana Government to ensure the preservation of Mangar Bani area from damages.

• The SC gave this order in the case of M. C. Mehta v. Union of India and Ors.

What is the Background of M. C. Mehta v. Union of India and Ors Case?

• The court gave the order on contentions based on a news report which stated that Archeological Survey of India (ASI) has set up a team to perform carbon dating on stone carvings.
  • The site is situated in the villages of Mangar and Kot within the Faridabad district of Haryana.
• A team consisting of five members from the ASI is set to conduct carbon dating on the ancient stone carvings, which are thought to date back to the Upper Paleolithic era.

What were the Court’s Observations?

• The SC noted that “There has been some press reports to the effect that carbon dating of paleolithic era stone carvings in the Aravalli's has been found and ASI has set up 5-member Committee. This area may thus require protection. The State of Haryana will file a response on this behalf and ensure that if the report is correct, no damage is caused in the area”.

What is Legality of Carbon Dating in India?

• Carbon dating, also known as radiocarbon dating, is a scientific method used to determine the age of archaeological artifacts or ancient remains by measuring the amount of carbon-14 they contain.
  • In India, the legality of carbon dating itself is not a specific issue.
• Carbon dating is a widely accepted scientific method, and its use is not typically regulated by legal frameworks.
• In the case of Smt. Laxmi Devi and Ors. v. State of UP through its Principal Secretary (2023), Allahabad High Court allowed the ASI to conduct Carbon Dating of a 'Shivling' inside the Gyanvapi Mosque in Varanasi, Uttar Pradesh.