Decision taken to surrender six trusts in 2015 on its own volition, says Tata Trusts
Hyderabad, Nov 1 (UNI) In the wake of the reports that the Office of the Principal Commissioner of Income Tax, Mumbai, in its order dated October 31, 2019, cancelled the Income Tax registration of six Tata Trusts, the organization on Friday clarified that this order of cancellation is a culmination of the decision taken by these six Trusts in 2015 to surrender, of their own volition.
The trusts have been identified Jamsetji Tata Trust, R.D. Tata Trust, Tata Education Trust, Tata Social Welfare Trust, Sarvajanik Seva Trust, and Navajbai Ratan Tata Trust, the Trusts.
It also clarified that their registration under the Income Tax Act and to not claim the associated income tax exemptions.
The decision to surrender the registration (an option available in law) was taken in the best interests of the Trust and to maximise the resources available to the Trust for their charitable work which is the principal object and focus of the Trusts, the Trusts said in a statement.
While the Tax Department’s order has cancelled the Trusts’ registration with immediate effect, we believe that as a matter of law and consistent with the Department’s own decision in the past, the cancellation should take effect from 2015, when the registrations were surrendered and the Trusts themselves consented to cancellation, it said.
The Trusts are examining the order and will take necessary next steps in accordance with the law.
The Trusts have effective legal options to vindicate their grievances against today’s order both factually and legally, it said.
It also clarified that Trusts have not received any demand notice from the Income Tax Department pursuant to the cancellation order, as has been speculated in certain sections of the media.
It is equally surprising how the issue of seizure of the Trusts’ assets has been raised today, it added.
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