Setback for PFI as IT Dept cancels 80G registration over violations of IT rules

Big jolt for Popular Front of India as Income Tax Department canceled 80G registration citing severe violation of rules. The cancellation of the registration enjoyed by the religious outfit comes days after explosives were found in Kerala and also PFI was alleged to be involved in illegal activity.  

In a setback for Popular Front of India (PFI), the Income Tax Department citing violation of rules has immediately canceled the 80G registration enjoyed by the religious outfit.

As per reports, the IT department contended that it drifted away from its objective in the memorandum of association of the assessee society. The outfit had applied for registration to one particular religious community which according to officials is against section 13(1)(b) of IT Act 1961 and also attracted section 12AA(4)(a) of IT Act under which the cancellation was initiated.

As per the department's order dated March 22, 2021, the activities of the outfit are 'doubtful' in nature in the context of section 12AA(3) of  the Income Tax Act 1961.

However, the report further stated that the PFI as a registered entity U/s 12A r.w.s. 12AA of the Income Tax Act 1961 vide registration No. P-1589648 dated 28.08.2012, enjoying benefit U/s 80G. The outfit has filed Return of Income regularly since A.Y. 2013-14 till A.Y. 2020-21.

The reports further state that PFI was involved in destroying goodwill and brotherhood among different communities.

The body blow to PFI comes days after a large number of explosives were found in the forest area of Kollam district of Kerala. The search was conducted following input from intelligence after a few persons were caught in Uttar Pradesh allegedly involved in terror activity. As per information, the PFI was engaged in giving training to its cadres in forest areas to allegedly carry out attacks.

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