CBDT quizzes senior officers over cancellation of Tata Trusts' registration

The Trusts is of the view that the cancellation should apply retrospectively as it had offered to surrender the registration in 2015.

The Central Board of Direct Taxes (CBDT) has summoned senior officials who were till recently handling the case linked to the cancellation of Tata Trusts registration. The tax department is seeking explanation from these officials over the cancellation date to find out if there were lapses.

Tata Trusts—the largest shareholder in the group’s holding company Tata Sons with a 66 per cent stake — had last month moved the Income Tax Appellate Tribunal (ITAT) to challenge the tax department order on cancelling the registration.

On October 31, the department had cancelled the registration of six trusts operating under Tata Trusts, citing violation of norms applicable to charitable institutions.

The contentious issue that Tata Trusts is challenging is the date of the order, which makes it liable to pay a much higher amount of tax under the new tax provision introduced in June 2016 concerning charitable trusts.

The Trusts is of the view that the cancellation should apply retrospectively as it had offered to surrender the registration in 2015, about one year before the new tax provision became effective.

According to sources in the know, CBDT wants officials, who were the in charge of the matter during that period and also post that, to explain the rationale of not resolving the case in the stipulated time period. The officials have been asked to give a rationale for not acting on the Trusts’ registration in 2015 after a show-cause notice issued the same year, said two persons privy to the development.

The CBDT is also trying to ascertain whether the Tata Trusts case triggered the special provision in the regulation, one of the sources quoted above said.

Business Standard

86% against Centre's move to intercept data on personal computers: BS poll

Govt issued an order authorising 10 security and investigative agencies and Delhi Police to "intercept, monitor and decrypt any information generated, transmitted, received or stored on any computer".

A vast majority of Indians are not in favour of security and investigative agencies snooping on their data, shows an online poll conducted by Business Standard.

On Friday, the government triggered a major controversy by authorising 10 central security and investigative agencies to monitor and intercept all computers, a decision that came under severe attack from the Opposition which accused the government of creating a surveillance state.

Business Standard conducted a poll on its website, Twitter and Facebook pages asking, "Do you welcome Modi govt's move to authorise 10 central agencies to intercept, monitor and decrypt information in “any” computer?"

Of 5,085 respondents, 661 opted 'Yes', 4379 opted 'No' and 45 opted 'Can't say'.

Here's the break-up of the responses in percentage terms across platforms:

Strongly defending its action, the government hit back at the Congress saying the order was a mere repetition of a notification issued in 2009 during the UPA rule.

The issue came to the fore with the Union Home Ministry on Thursday issuing an order authorising 10 central security and investigative agencies and the Delhi Police to "intercept, monitor and decrypt any information generated, transmitted, received or stored in any computer".

The 10 agencies given the powers of interception are the Intelligence Bureau, Narcotics Control Bureau, Enforcement Directorate, CBDT, DRI, CBI, NIA, RAW, Directorate of Signal Intelligence (for service areas of Jammu and Kashmir, Northeast and Assam only) and Delhi Police.

The Opposition, both inside and outside Parliament, slammed the government calling the decision an "undeclared Emergency" and an assault on the citizens' fundamental right to privacy and demanded its withdrawal.

Congress leader Anand Sharma said it was an attempt to create a surveillance state, a view shared by many other leaders who also termed it as an Orwellian state.

The issue rocked the Rajya Sabha which was adjourned with the opposition members protesting against the government and indulging in slogan shouting.

Finance Minister Arun Jaitley rose to put up a strong defence of the government recalling that Thursday's order was only a repetition of a similar order issued under the rules framed during the UPA regime in 2009 to the Information and Technology Act enacted in 2000.

Business Standard