Big blow to jailed SP leader Azam Khan… Tax exemption of Maulana Mohammad Ali Johar Trust canceled

Jailed Samajwadi Party leader Azam Khan has suffered a major shock. The Income Tax Department has canceled the 12A registration of Maulana Mohammad Ali Johar Trust. This means that it will no longer be exempted from income tax and will be considered as ‘Association of Persons’. This action has been taken for the period 2020-21 to 2023-24. In the order, the activities of the Trust have been described as irregular and against public interest. In such a situation, now the trust will have to face recovery of tax, interest and penalty.

Earlier, Income Tax raids were conducted on Azam Khan and his associates. Mohammad Ali Jauhar University runs under the Jauhar Trust. Azam is the chief trustee of this trust and the lifetime chancellor of the university. The financial problems of the trust may increase further due to loss of tax benefits. The Income Tax Department has canceled the registration of Maulana Mohammad Ali Jauhar Trust.

In the order, the activities of the Trust have been described as irregular and against public interest. Now the trust will have to face the recovery of heavy tax, interest and penalty. Jauhar Trust will no longer be able to do any activity. The investigation found the Trust’s activities suspicious; It is alleged that the Trust was not involved in any public welfare work, donations were forcibly collected and dummy trustees were appointed.

Notices were issued to the trust and university

It is said that earlier, the Income Tax Department had issued notices to Maulana Mohammad Ali Jauhar Trust (registered in Lucknow) and Jauhar University (located in Rampur). These notices were sent in connection with the investigation into financial irregularities, tax evasion and alleged misuse of government funds. The Income Tax Department had issued these notices on June 17.

Irregularities worth ₹450 crore were revealed

According to Income Tax sources, important evidence was collected during the investigation conducted a few years ago. On the basis of those documents and seized evidence, the scope of investigation was expanded. Following the Income Tax Department’s action against Azam Khan and his close associates, irregularities worth about ₹450 crore were revealed.