THE Income Tax Department has revoked the tax exemption benefit given to Islamic organisation PFI after it found that its activities were allegedly “not genuine” as required to be undertaken by a legally notified charitable organisation. The department recently cancelled the registration of the Popular Front of India (PFI) granted under section 12AA (3) of the Income Tax Act, 1961.

 

This was granted to the organisation in August 2012. An order issued by the department in March said the tax benefit for the PFI is being “cancelled/withdrawn” with effect from assessment year 2016-17. The order effectively means that the PFI will now have to pay I-T and those who donate to it will not enjoy I-T exemption. It can also go in for an appeal against the order before a higher authority of the department followed by the courts. The PFI, formed in 2006 in Kerala and headquartered in Delhi, has been under the scanner on charges of its and its members’ involvement in money laundering crimes and terrorist activities.