TaxTMI 
TaxTMI 
2019 (11) TMI 1840
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....According to the appellant, the Trust is working under the Poondimadha Religious Trust, Poondi, Thanjavur District. The appellant further submitted that the Trust is in need of contribution in and around the globe to carryout various welfare activities. Hence, Poondimadha Religious Trust made an application under Section 11(1) and (2) and Section 16 of the Foreign Contribution (Regulation) Act, 2010 to the respondent, dated 21.06.2018 for the acceptance of foreign contribution by an association having definite cultural, economic, educational religion or social programme. 3. Further, the learned counsel for the appellant trust contended that the Trust was registered as a public Trust under Section 12AA of the Income Tax Act, 1961 with effect from 08.04.2015 by an order passed by the Commissioner of Income Tax (Exemption), Chennai vide UR No.AACTP6341F/05/15-16/T-0277, dated 20.08.2015. The learned counsel for the appellant would also submit that the entire account of the Trust is being regularly audited and the same is being approved by the Income Tax Authorities for Tax exemption considering the status of the Trust as a public religious Trust. 4. The learned counsel for the a....
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....ant NGO has to fulfil at all time. Section 12(4) is reproduced below:- "(4) The Following shall be the conditions for the purpose of sub-Section (3), namely:- (a) the person making an application for registration or grant of prior permission under sub- section (1).- (i) is not fictitious or benami; (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 ....
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....respondent would further contend that one of the basic objects of the FCRA, 2010 is to allow/regulate only that kind of foreign contribution / donation which will contribute to social good and not for self- aggrandisement / personal enrichment of the recipients / donees. Therefore, the authorities have carefully considered all the relevant materials and refused to grant certificate of registration and accordingly communicated to the petitioners vide letter dated 22.10.2018. Further, an information in this regard was also conveyed to the petitioners vide email [email protected] and SMS (Mobile No.9443703438) on 22.10.2018 as provided by the applicant in FC-3 form while filing the application for registration under The FCRA, 2010. The learned counsel for the respondent would also submit that they are ready to submit the field agency report, being secret in nature, will be produced before this Court in sealed cover envelope if this Court so directs. 8. Heard the learned counsel appearing for the petitioner; the learned counsel appearing for the respondent and perused the materials available on record. 9. The appellant is a Trust registered under the Provisions of Tr....
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....out only a sum of Rs. 2,80,300/- and for the purpose of Annanthanam expenses, it has spent only a sum of Rs. 7,92,031/-. Further for the year end of 31.03.2019, the total revenue for the appellant Trust is a sum of Rs. 8,11,32,134/-, whereas the appellant Trust has spent for Charity and donations for a sum of Rs. 1,39,700/- and for the purpose of Annanthanam expenses, it has spent only a sum of Rs. 7,74,902/- and it has shown that excess income of Rs. 1,98,04,098/- for the year end 31.03.2018 and for the year end 31.03.2019, the excess income was shown as Rs. 2,33,03,711/-. One of the grounds for filing this appeal challenging the order passed by the respondent is that the Board of Trustees are interested only in the welfare activities, but the respondent has failed to consider the intention of the Board of Trustees on the welfare activities. But on the perusal of the balance sheet, it appears that only meagre amount has been spent for welfare activities for the financial year ending 2018 and 2019. Further, it appears that the appellant Trust has desperately failed to carry out the real object, for which the Trust has been created. Under these circumstances, the appellants' con....