New Delhi, Aug 14 (IANS): The Delhi High Court has granted a stay on the income tax reassessment proceedings initiated against Oxfam India noting the need for further examination of the matter.

The bench, comprising Justice Rajiv Shakdher and Justice Girish Kathpalia, directed the filing of a counter-affidavit within the next six weeks, with a rejoinder, if any, to be submitted at least five days before the subsequent hearing.

"In the meantime, there shall be a stay on the continuation of the reassessment proceeding till further directions of the court," the bench said.

The petitioner, Oxfam India, has challenged the reassessment notice under Section 148A(b) of the Income Tax Act, 1961.

The petitioner's engagement in litigation activities that allegedly violated the Foreign Contribution (Regulation) Act, 2010, had led to suspicion regarding contributions received from foreign nationals.

Additionally, the petitioner's failure to recognise a sum of Rs 15,09,85,211 as revenue, which was received as advances for future projects, had drawn attention.

The petitioner contended that accusations of receiving suspicious contributions from foreign nationals were misguided, as contributor details were provided.

Moreover, the petitioner argued that the assertion by the Assessing Officer that the mentioned sum should be recognised as income was flawed, as it was meant for future projects and not immediate income.

The hearing is to come up next on November 22.