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TMI Blog2019 (11) TMI 1840X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant Trust that the respondent has mechanically rejected their application has no merits. The respondent has considered the aims and services rendered by the appellant Trust and also the welfare activities and thereafter, passed the order rejecting the application of the appellant. As stated by this Court above, the appellant Trust has been spending very meagre amount to the welfare activities, when the main intention for the constitution of the Trust is only for welfare activities and on perusal of the balance sheet, it clearly appears that they are not on the welfare activities, on the other hand it shows that there are lot of income out of the rental income and through other modes, which appears that they are more involved in commercial activities than the welfare activities. The revenue of the appellant Trust for the year ending of 31.03.2019 is more than Rs. 8 Crores. When the revenue was Rs. 8 Crores and the Trust was created for the purpose of welfare activities, not only for the particular religion, but also for all the religion, here towards the welfare activities, the amount spent by the appellant Trust was very meagre, which clearly shows the intention of the Manageme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious 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 appellant would further contend that the registration of the Trust under the Foreign Contribution (Regulation) Act, 2010, could be carried out only through online. Therefore, he has contended that he has filed an application as stated above on 21.06.2018 and it was mechanically withou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onvicted 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 field 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 proposed to be utilised; (d) in case the person being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide 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 Trust Act. The said Trust was registered on 04.03.2014. Subsequent to the creation of the Trust, the appellant also filed an application before the Income Tax Authority under Section 12AA of the Income Tax Act, 1961 and obtained necessary permission for the tax exemption for the donations / contribution made to the Trust. Under these circumstances, the appellant Trust in order to get the contribution in and around the globe to carry out various welfare activities filed the application before the respondent to get foreign contribution under the Act. The said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed 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' contention that they have filed the application for the purpose of obtaining the Foreign Contribution to carry out the welfare activities of the public, is only with a view to get the money under the umbrella of welfare activities. 12. Therefore, this court is of the view that the contention of the appellant Trust that the respondent has mechanically rejected their application has no merits. The respondent has considered the aims and services rendered by the appellant Trust and also the welfare activities and thereafter, passed the order rejecting the application of the appellant. As stated by this Court above, the appellant Trust has been spe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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