FCRA Annual Return was Valid Where Petitioner had Opened Belated SEBI Bank a/c & Paid Penalty Amount | HC

Case Details: Helping Hands Jaipur Society v. Union of India - [2023] 152 taxmann.com 542 (HC-Delhi)

Judiciary and Counsel Details

• • Prathiba M. Singh, J.
  • Ruchesh Sinha & Ms Vaishali, Advs. for the Petitioner.
  • Ruchir Mishra, Sanjiv Kr. Saxena, Mukesh Kr. Tiwari, Ms Poonam Shukla & Ms Reba Jena Mishra, Advs. for the Respondent.

Facts of the Case

In the instant case, the petitioner, an NGO, was registered under section 11(1) of the Foreign Contribution (Regulation) Act, 2010. The Act was amended by the Amendment Act, 2020. The said Amendment Act mandated the opening of a Foreign Contribution Regulation Act (FCRA) bank account with the State Bank of India Sansad Marg Branch.

Later, the petitioner faced difficulties in uploading the FCRA annual return under form FC-4 for the financial year 2019-2020 due to the fact that FCRA bank account details were being sought as of 31-3-2020.

Consequently, it was noted that the petitioner had opened a designated FCRA bank account with SBI belatedly, i.e., on 4-10-2021. The petitioner also deposited a penalty amount with the respondent for such delay in opening the FCRA bank account. The petitioner also uploaded the annual return for the financial year 2019-20.

High Court Held

The High Court held that the prayer for a refund was not tenable and was consequently rejected. However, the FCRA FC-4 annual return for the financial year 2019-2020 which had been uploaded, would be considered valid without requiring any payment of further penalties by the petitioner.

List of Cases Referred to

• • WNS Cares Foundation v. Union of India [2023] 146 taxmann.com 386/177 SCL 57 (Delhi) (para 12)
  • Shree Swaminarayan Mandir v. Union of India [2023] 150 taxmann.com 211 (Delhi) (para 12).