First FCRA, now think tank CPR loses its tax-exempt status https://indianexpress.com/article/india/first-fcra-now-think-tank-cpr-loses-its-tax-exempt-status-8779945/ Ritu Sarin July 6, 2023 The crux of the IT Department’s argument is that supporting litigation is not a charitable activity and, thus, CPR stands to lose its tax exemption.
Debilitating blow to an independent, highly regarded research institution that strikes at the core of its ability to function., says president; denies allegations, to appeal in ITAT.
The IT also claimed “discrepancies” in CPR’s tax filings to the tune of Rs 1.43 crore for the year 2017-2018 and Rs 81.45 lakh for the year 2021-2022. It alleged that the CPR “mixed up” funds received by it under provisions of the FCRA with its core funds. The IT also cited seven books the CPR had published and alleged that the think tank was “subsidizing” the authors but did not have any revenue from or hold ownership of the books. These grounds, listed in the show-cause notice received by the CPR on December 22, 2022 are the very same for which it has lost its IT exemption under Section 12A of the Income Tax Act.