https://www.taxtmi.com/caselaws?id=784456 Rejection of an application for registration under the FCRA was challenged on the grounds of alleged receipt and transfer of foreign contribution (FC). The HC held that receipt of FC without prior permission could not sustain rejection because the authority had offered compounding, the applicant compounded the offence, and the Ministry formally compounded it, creating a legitimate expectation that compounding would not be treated as a disqualification without prior warning; consequently, rejection on that ground was set aside. The HC further held that the new allegation of transfer of FC to another organization was introduced without notice and without particulars, violating natural justice and suffering from vagueness; the order was set aside and remitted for fresh notice and reconsideration. The HC also held that prior recognition as a charitable entity under the IT Act was relevant and had to be considered under Section 52 FCRA; non-consideration showed non-application of mind. en-us Fri, 19 Dec 2025 00:00:00 +0530 Tue, 06 Jan 2026 08:47:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=784456 Rejection of an application for registration under the FCRA was challenged on the grounds of alleged receipt and transfer of foreign contribution (FC). The HC held that receipt of FC without prior permission could not sustain rejection because the authority had offered compounding, the applicant compounded the offence, and the Ministry formally compounded it, creating a legitimate expectation that compounding would not be treated as a disqualification without prior warning; consequently, rejection on that ground was set aside. The HC further held that the new allegation of transfer of FC to another organization was introduced without notice and without particulars, violating natural justice and suffering from vagueness; the order was set aside and remitted for fresh notice and reconsideration. The HC also held that prior recognition as a charitable entity under the IT Act was relevant and had to be considered under Section 52 FCRA; non-consideration showed non-application of mind. Case-Laws FEMA Fri, 19 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=784456