The Delhi High court ruled that the citizens can not be penalised for a discrepancy in FCRA Annual Return Form i.e. FC-4 Form, prescribed by the Government.
The petitioners, Arbor Charitable Foundation, are recipients of foreign contributions in accordance with the protocol set out in the FCRA. It is asserted, in the petition, that the petitioners are possessing valid incorporation certificates and FCRA registration certificates as required under Section 11 of the Foreign Contribution Regulation Act, 2010 (FCRA).
The case arises out of the peculiarities in the FC-4 Form, whereunder returns, regarding contributions received by beneficiaries under the FCRA are required to be filed.
Ms. Srishti Agnihotri, the Council on behalf of the petitioner submit that this has resulted in a peculiar situation in which, though 31st March, 2020 would be the relevant date for filing of the return for the year 2019-2020, the requirement of the account under the FCRA/FCR Rules being in the SBI, New Delhi was introduced only in September, 2020 and the bank was notified only on 7th October, 2020. Prior thereto, the petition asserts that there was no requirement of the FCR account being in SBI.
To a query from the Court as to how this situation could be remedied, Mr. Farman Ali, Counsel for the respondent, seeks a short adjournment in order to enable him to obtain instructions specifically on this aspect. However, he submits that no stay ought to be granted, as the petitioners can submit their return even after 30th June, 2021, with appropriate penalty.
The Single bench of Justice C.Hari Shankar said, “citizens cannot be penalised for a discrepancy in the form prescribed by the respondent which has resulted in the form being unable to be submitted even in the case of a law abiding citizen.”
The court restrained the respondent authority from taking any coercive action against the petitioner for failure to file the requisite return under the FC-4 Form before 30th June, 2021 till the next date of hearing.
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