In a setback for advocate Ritwick Dutta of ‘Lawyers Initiative for Environment’ (LIFE), the Supreme Court on Monday rejected his challenge against the Income Tax (I-T) department’s assessment of funds received by LIFE from the US-based organization ‘EarthJustice’. The funds, which were presented as legal fees, were allegedly used for opposing thermal power projects in India, reports Dhananjay Mahapatra.

Dutta’s legal team, led by advocates C U Singh and Sachit Jolly, argued before the Supreme Court that the funds were declared as income and subjected to I-T assessment, asserting that there was no suppression of information. They claimed that the proceedings were an attempt to harass an environmental advocate.

On behalf of the I-T department, Solicitor General Tushar Mehta and advocate Zoheb Hossain provided evidence that LIFE had received Rs 22 crore from EarthJustice as a professional fee. The department alleged that these funds were being used for purposes not aligned with the approved objectives of LIFE, including litigation against coal plants in India, which were routed through Ritwick Dutta, the managing trustee of LIFE, under the guise of professional fees.