The court also noted that once an offence is compounded, it cannot be used to deny statutory rights like FCRA registration. The Ministry has been instructed to re-evaluate its rejection within three months.

[31/12, 08:31] Sekarreporter: https://www.taxscan.in/top-stories/charitable-status-recognised-us-12a-cannot-cease-under-fcra-madras-hc-sets-aside-rejection-orders-reconsideration-1441114
[31/12, 08:31] Meta AI: The Madras High Court has ruled that charitable status recognised under Section 12A of the Income Tax Act cannot cease under the Foreign Contribution (Regulation) Act (FCRA). The court set aside the rejection order and directed the FCRA wing to reconsider the application, citing that recognition under the IT Act cannot be negated under FCRA. ¹

The case involved Arsha Vidya Parampara Trust, which teaches Vedanta, Sanskrit, and Yoga, and was accused of being a religious organisation. The court held that teaching Bhagavad Gita and related disciplines doesn’t make a trust “religious” for FCRA purposes, and that the Bhagavad Gita is a moral science, not a religious book. ² ³

The court also noted that once an offence is compounded, it cannot be used to deny statutory rights like FCRA registration. The Ministry has been instructed to re-evaluate its rejection within three months.

Would you like to know more about the implications of this ruling or the provisions of the FCRA?