TaxTMI 
TaxTMI 
2017 (10) TMI 909
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.... under Section 12A of the Income Tax Act, 1961 (hereafter "Income Tax Act") by the office of the Commissioner of Income Tax, Agra. The petitioner has also been granted approval under Section 80G of the Income Tax Act. 3. The petitioner further states that the State of Uttar Pradesh has granted an essentiality certificate for establishing a medical college and the petitioner has already been granted affiliation by Dr. B.R. Ambedkar University, Agra for running a medical college. It is stated that the petitioner has also obtained the necessary approvals from the concerned authorities like the Pollution Control Board for bio medical waste and the hospital being run by the petitioner has also been registered by the Chief Medical Officer, Agra (Uttar Pradesh). 4. The petitioner submitted an online application to the respondent for registration under the FCRA. The said application was rejected by the impugned communicated dated 01.08.2014 on the ground that "the Organisation is functioning on commercial basis for personal gains". On receipt of the aforesaid communication, the petitioner sent a letter dated 25.08.2014 requesting that the said decision be reconsidered. The petitioner poi....
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....inite cultural, economic, educational, religious or social programme shall accept foreign contribution unless such person obtains a certificate from the Central Government. 11. Section 12 (1) of the FCRA provides for grant of certificate of registration. Section 12(1) mandates that an application for grant of registration shall be made to the Central Government in such form and manner and along with such fees as may be prescribed. In terms of Regulation 9 of the Foreign Contribution (Regulation) Rules, 2011, an application under Section 11(1) for Registration is required to be made electronically on-line in Form FC-3 and is required to be followed by forwarding of a hard copy duly signed by the Chief Functionary of the association together with the required documents. A bare perusal of the Form FC-3 indicates that an application is required to provide extensive information regarding the association and also its office bearers. In addition, the applicant has to further disclose whether any of its office bearers have been convicted by any court of law; prosecuted for any offence; and/or found guilty of diversion or mis-utilization of the funds of the organization and/or any other as....
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....(ii) has not been prosecuted or convicted for indulging in activities aimed at conversion through inducement or force, either directly or indirectly, from one religious faith to another; (iii) has not been prosecuted or convicted for creating communal tension or disharmony in any specified district or any other part of the country; (iv) has not been found guilty of diversion or mis-utilisation of its funds; (v) is not engaged or likely to engage in propagation of sedition or advocate violent methods to achieve its ends; (vi) is not likely to use the foreign contribution for personal gains or divert it for undesirable purposes; (vii) has not contravened any of the provisions of this Act; (viii) has not been prohibited from accepting foreign contribution; (b) the person making an application for registration under sub-section (1) has undertaken reasonable activity in its chosen filed for the benefit of the society for which the foreign contribution is proposed to be utilised; (c) the person making an application for giving prior permission under sub-section (1) has prepared a reasonable project for the benefit of the society for which the foreign contribution is propo....
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.... of Section 11 & 12 of the Income Tax Act, 1961 indicates that income derived from property which is held wholly for charitable and religious purposes is exempt from income tax subject to other conditions being complied. Section 12A of the Income Tax Act provides for registration of a trust or institution which claims exemption under Section 11 and 12 of the said Act. In terms of Section 12A(1)(b) of the Income Tax Act, the accounts of the trust/ institution as duly audited by a Chartered Accountant, are required to be furnished to the Income Tax Department. Plainly, a trust/society which applies its income for purposes other than for charitable purposes would not be entitled to registration under Section 12A of the Income Tax Act. 17. Undisputedly, the Income Tax Act contains an elaborate scheme for ensuring that only such institutions which utilize the income towards charitable/religious purposes are granted the exemption as provided in respect of their income. Similarly, approval under Section 80G of the Income Tax Act is only available to specified institutions/funds and such institutions, which are established for charitable purposes. 18. Since the petitioner is a society re....