TaxTMI 
TaxTMI 
2026 (1) TMI 212
X X X X Extracts X X X X
X X X X Extracts X X X X
....een the parties. The petitioner submitted a fresh application in Form FC-3A on 27.01.2025. Clarifications were sought. The petitioner responded to them. However, the application seeking grant of registration was rejected vide order dated 08.09.2025 by the second respondent. Assailing the same, this writ petition has been filed. 3. The learned Senior Counsel appearing for the petitioner reiterated all the contentions set out in the affidavit filed in support of the writ petition. He called upon this Court to set aside the impugned order and grant relief as prayed for. 4. Per contra, the learned Additional Solicitor General of India for the Madras High Court assisted by the Deputy Solicitor General of India submitted that the impugned order is well reasoned. He pointed out that the petitioner, having contravened the provisions of the FCRA, is not entitled to obtain registration. His core contention is that registration under FCRA is not a matter of right. The learned Additional Solicitor General pointed out that the issue has larger ramifications. He highlighted that several NGOs are receiving foreign funds and there is a national security angle also. He was of course fai....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y mentioned the name functionary as mentioned in the FC-3A. please upload all the clarification/documents within 14 days failing which the case may be decided in accordance with the provisions of FCRA, 2010 and rules made there under. (Clarification)" The petitioner clarified vide letter dated 28.04.2025 as follows : Thereafter, the impugned order of rejection came to be passed. The impugned order or rejection rests on two grounds. (a) The petitioner had received foreign contribution funds without prior permission and there has been transfer of FC fund as donation to another organization. (b) The nature of the petitioner-organisation appears to be religious. 7. The first ground is not sustainable. This is for more than one reason. In the queries raised in April 2025, the authority had only raised the issue of receipt of foreign funds without proper permission. In their reply dated 28.04.2025, the petitioner admitted their fault. On 24.07.2025, the authority once again drew the petitioner's attention to the very same receipt of funds and gave them an option of compounding the same. Availing the said option, the petitioner compounded the offence by paying Rs.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion (1) shall exercise the powers to compound an offence, subject to the direction, control and supervision of the Central Government. (4) Every application for the compounding of an offence shall be made to the officer or authority referred to in sub-section (1) in such form and manner along with such fee as may be prescribed. (5) Where any offence is compounded before the institution of any prosecution, no prosecution shall be instituted in relation to such offence, against the offender in relation to whom the offence is so compounded. (6) Every officer or authority referred to in subsection (1), while dealing with a proposal for the compounding of an offence for a default in compliance with any provision of this Act which requires by an individual or association or its officer or other employee to obtain permission or file or register with, or deliver or send to, the Central Government or any prescribed authority any return, account or other document, may, direct, by order, if he or it thinks fit to do so, any individual or association or its officer or other employee to file or register with, such return, account or other document within such ti....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... to the respondents for registration way back in the year 2021 itself. The application remained unconsidered. The process of consideration picked up steam only from October 2024. A fresh application was submitted in January 2025. Queries were raised in April and in the very same month, reply was submitted. In this background, even while the application for registration is under consideration, the authority gave an option of compounding the offence to the applicant on 24.07.2025. On the very next day, the compounding fee indicated by the authority was remitted by the petitioner. The authorities are expected to behave in a fair manner. It is an elementary principle of good governance. Even in criminal law, as soon as an accused is arrested, the police administer what is known as "Miranda warning". If confession is taken without giving such a warning, the confession is inadmissible. If the authority had intended to reject the petitioner's application on the ground of contravention of the provisions of the Act, then, the authority even while giving an option of compounding should have made it clear that compounding will only shield them from prosecution and that it would amount to ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he petitioner is also engaged in imparting the message set out in Bhagavad Gita, the authority came to the conclusion that the petitioner is a religious body. Bhagavad Gita is not a religious book. It is rather a moral science. The Hon'ble Allahabad High Court in the decision reported in 2007 SCC OnLine All 1301 (Shyamal Renjan Mukherjee v. Nirmal Ranjan Mukherjee) held that Bhagavad Gita may be recognised as national (Rashtriya) Dharma Shastra. It speaks about internal and eternal truth. The learned Judge noted that many a leader of our freedom struggle such as Mahatma Gandhi, Maharishi Aurobindo, Lokamanya Tilak etc., invoked Bhagavad Gita to inspire the nation to fight against the colonial rule. Article 51-A(b) of the Constitution of India states that it shall be the duty of every citizen of India to cherish and follow the noble ideals which inspired our national struggle for freedom. Article 51-A(f) talks about valuing and preserving the rich heritage of our composite culture. Bhagavad Gita cannot therefore be confined within a given religion. It is a part of Bharatiya civilisation. 15. What applies to Bhagavad Gita would apply to Vedanta also. It represents ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ection 52 of the Act. The certificate issued in favour of the petitioner under Section 12A of the I.T Act is definitely a relevant material and failure to consider the same indicates non-application of mind. 17. The learned Additional Solicitor General of India vehemently contended that the writ petition itself is not maintainable because the Act provides for remedy of a civil appeal under Section 31(2) of the Act. There is no doubt that as per Section 31 of the Act, an appeal will lie to the High Court against an order of rejection under Section 12 of the Act and such an appeal shall be deemed to be an appeal from an original decree and the provisions of Order 41 of the First Schedule to CPC shall, as far as may be apply. The question is whether this writ petition will cease to be maintainable merely because the statute provides for an appeal remedy. 18. It is well settled that writ petition will be maintainable even though there is an alternative statutory remedy if there is violation of principles of natural justice (vide State of UP v. Md.Nooh (AIR 1958 SC 86). The Hon'ble Supreme Court in the recent decision reported in 2025 LiveLaw (SC) 1129 (Rikhab Chand Jain v. UO....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... No. 6700142025 Please find below our submission for the clarifications requested, replied in the same order as asked. 1. After registering our trust in June 2017, we were mainly engaged in conducting online classes on Sanskrit, Bhagavad Gita and Upanishads. Hence the expenditure incurred up to 2020 was limited to having a virtual infrastructure like creating and maintaining a website, Internet connection and getting some office supplies. A need was felt for creating a residential Gurukulam infrastructure for supplementing the online classes, because the effectiveness of online classes was limited, for such deep knowledge. We started purchasing land, with this objective, in February 2021 (3.35 acres for Rs. 32,71,250 + 1.2 acres for Rs. 15 lakhs and a sale agreement for Rs. 20 lakhs for purchase of 3.48 acres). Given below are the year wise activity details as per our audit report - a. FY 2021-22 - Completed purchase of land to the extent of 3.48 acres on August 3,2021 for Rs. 59,88,000 and another piece of contiguous land to the extent of 1 acre on March 2, 2022 for Rs. 15 lakhs. After purchasing the land in February and August 2021 we engaged in preparing the land for co....