The Centre for Policy Research, one of the country’s most prominent public policy think tanks, has been stripped of the tax-exempt status it enjoyed for around 50 years. The fresh setback comes just four months after the think tank lost its license to receive foreign donations, severely crippling its funds’ flow.
Speaking to The Indian Express, CPR’s President Yamini Aiyar termed the development a “debilitating blow” to an independent, highly regarded research institution that “strikes at the core of its ability to function.” The IE report further states that the CPR is likely to file an appeal against the June 30 order in the Income Tax Appellate Tribunal (ITAT).
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In December 2022, the CPR received a show-cause notice from the Income Tax authorities alleging that its activities were “not in accordance with the objects and conditions” under which it was registered.
The activities listed by the IT authorities, both in its notice and cancellation order, cite its involvement in the Hasdeo movement against coal mining in Chhattisgarh and receipts to the tune of Rs 10.19 crore over the past six years for its Namati-Environmental Justice Program, The IT authorities alleged that the funds were mostly used to file “litigation and complaints” rather than do research.
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The IT Department has argued that supporting litigation is not a charitable activity and, thus, CPR stands to lose its tax exemption, According to the IE report, the IT also claimed “discrepancies” to the tune of Rs 1.43 crore for the year 2017-2018 in CPR’s tax filings 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 Department has also cited seven books the CPR had published and alleged that the think tank was “subsidising” the authors but did not have any revenue from or hold ownership of the books.