#FCRA

The ITAT Delhi has ruled that the CPC cannot unilaterally treat foreign contributions disclosed under FCRA as undisclosed income under Section 143(1), especially when the assessee has consistently reported them over multiple years. This sets a critical precedent for NGOs and non-profits, affirming that mechanical adjustments without verification violate procedural fairness and the principle of tax consistency.

ITAT Mumbai rules that denial of FCRA renewal alone cannot justify rejection of charitable trust registration under Section 12AB. The tribunal mandates an independent assessment of the trust's genuineness and compliance with tax laws, reinforcing natural justice for charitable entities.