FCRA Rejection remanded

The ITAT set aside the rejection of renewal of registration under Section 12AB and the consequential rejection of approval under Section 80G.

The Tribunal held that the Commissioner of Income Tax (Exemptions) had mechanically relied upon the rejection of FCRA renewal without independently examining whether the alleged non-compliance was material to the trust's charitable objects, the genuineness of its activities, or the conditions prescribed under the Income-tax Act.