TMI Blog2017 (10) TMI 909X X X X Extracts X X X X X X X X Extracts X X X X ..... ration, which is set out in Section 12(4)(vi) of the Act. Notwithstanding the registration granted to the petitioner under the Income Tax Act, the permission sought by the petitioner could have been refused if there was any evidence to show that the foreign contribution is likely to be used for personal gains or diverted for undesirable purposes. But, as stated earlier, there is no material to indicate that these conditions were satisfied. There is no material which would justify the conclusion that the petitioners were likely to divert the foreign contribution for personal gains or utilise it for any undesirable purposes. In this view, the impugned orders cannot be sustained and are consequently, set aside. The respondents are directed to process the petitioner's application for registration under Section 12 of the FCRA, as the only ground on which the same was denied is unsustainable. - W.P.(C) 12094/2015 - - - Dated:- 10-10-2017 - MR. VIBHU BAKHRU J. Petitioner Through: Mr. Aseem Mehrotra, Advocate. Respondent Through: Mr. Roshan Lal Goel and Ms. Anju Gupta, Advocates for UOI. O R D E R VIBHU BAKHRU, J 1. The petitioner - a Society registered und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a copy of its activity report for the past three years. However, the petitioner did not receive any response to its request for reconsideration of its application for registration under the FCRA. 5. Thereafter, on 03.09.2014, the petitioner filed an application under the Right to Information Act, 2005, inter alia, requesting for information on the basis of which the respondent had taken its decision to decline registration under Section 12 of the FCRA. The petitioner was subsequently informed that the petitioner s application had been rejected on the basis of a field agency verification report which could not be shared with the petitioners as it was exempt from disclosure under Section 8(1)(g) of the Right to Information Act, 2005. 6. The petitioner filed a writ petition captioned Dr. R.N. Gupta Technical Education Society v. Union of India: W.P. (C) 1129/2015, which was disposed of on the statement made on behalf of the respondent that the petitioner s representation dated 25.08.2014 would be responded to within a period of two weeks from the said date . 7. Thereafter the respondent sent a communication dated 07.12.2015 once again rejecting the petitioner s reques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 12 of FCRA are satisfied, it would ordinarily within ninety days from the date of receipt of the application under sub-section (1) of section 12, register such person and grant him a certificate subject to the terms conditions as may be prescribed. 13. Section 12 of the FCRA is set out below:- 12. Grant of certificate of registration. (1). An application by a person, referred to in section 11 for grant of certificate or giving prior permission, shall be made to the Central Government in such form and manner and along with such fee, as may be prescribed. (2) On receipt of an application under sub-section (1), the Central Government shall, by an order, if the application is not in the prescribed form or does not contain any of the particulars specified in that form, reject the application. (3) If on receipt of an application for grant of certificate or giving prior permission and after making such inquiry as the Central Government deems fit, it is of the opinion that the conditions specified in sub-section (4) are satisfied, it may, ordinarily within ninety days from the date of receipt of application under sub-section (1), register such person and grant h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being in force nor any prosecution for any offence is pending against him; (f) the acceptance of foreign contribution by the person referred to in sub-section (1) is not likely to affect prejudicially-- (i) the sovereignty and integrity of India; or (ii) the security, strategic, scientific or economic interest of the State; or (iii) the public interest; or (iv) freedom or fairness of election to any Legislature; or (v) friendly relation with any foreign State; or (vi) harmony between religious, racial, social, linguistic, regional groups, castes or communities; (g) the acceptance of foreign contribution referred to in sub-section (1),-- (i) shall not lead to incitement of an offence; (ii) shall not endanger the life or physical safety of any person. (5) Where the Central Government refuses the grant of certificate or does not give prior permission, it shall record in its order the reasons therefor and furnish a copy thereof to the applicant: Provided that the Central Government may not communicate the reasons for refusal for grant of certificate or for not giving prior permission to the applicant under this section in case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... un by them, were in violation of its charter or had diverted any part of its receipts for personal benefits of its promoters and not in accordance with its objects, the respondent would be well within its right to refuse registration under Section 12 of FCRA. 19. However, despite being called upon, the respondents have been unable to show any material, whatsoever which would justify such a conclusion. It is apparent form the above that the impugned orders have been passed without any material except a bald report, which inter alia, states that it is learnt that the colleges are run on purely for commercial purposes for personal gains of the office bearers . 20. The learned counsel for the respondent had submitted that the norms applicable under FCRA are different from that as applied by the Income Tax Authorities. This Court is unable to accept the said contention as the question whether a society established for charitable/religious purpose is one of the principal considerations for grant of exemption under Section 11 and 12 of the Income Tax Act, 1961. One of the pre-condition for availing exemption from charge of Income Tax is that the charitable society/trust would utili ..... X X X X Extracts X X X X X X X X Extracts X X X X
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