Commonwealth Human Rights Initiative Vs CIT (Delhi High Court)
The Delhi High Court has set aside a notice issued by the Income Tax Department to the Commonwealth Human Rights Initiative (CHRI), deeming the action premature. The notice, dated July 29, 2025, aimed to cancel the CHRI’s tax registration under Section 12AB(4)(a) of the Income Tax Act, 1961. The sole ground for this notice was the prior cancellation of the organization’s Foreign Contribution Regulation Act (FCRA) certificate by the Ministry of Home Affairs.
Senior Counsel for the petitioner, Arvind P. Datar, argued that the tax department’s notice could not be sustained while the challenge to the FCRA certificate cancellation was still under judicial review in a separate case (W.P.(C) 8666/2022). Representing the tax department, Mr. Shlok Chandra did not dispute the link between the two actions.
The court agreed that since the ground for the tax notice was pending adjudication, the department’s move was premature. The notice was consequently quashed, but the court granted the respondents the liberty to take further action in accordance with the law after the conclusion of the legal challenge to the FCRA certificate cancellation.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. This petition has been filed with the following prayers:
“a. Issue a writ, order or direction in the nature of certiorari quashing the Impugned Notice dated 29.07.2025 issued under Section 12AB(4)(a) of the Income Tax Act, 1961; and
b. Pass such other and further orders as this Hon ‘ble Court may deem just and proper in the facts and circumstances of the case and in the interest of justice.”
2. The submission of Mr. Arvind P. Datar, learned Senior Counsel for the petitioner is that the ground on which notice dated 29.07.2025 has been issued under Section 12AB(4)(a) of the Income Tax Act 1961 is that FCRA certificate issued to the petitioner has been cancelled by the Ministry of Home Affairs. According to him, the challenge to the cancellation of FCRA certificate is pending consideration before the learned Single Judge of this court in W.P.(C) 8666/2022 and as such the impugned notice could not have been issued without a decision on the cancellation of the FCRA certificate.
