Income Tax Notice u/s 12AB(4)(a) Unsustainable During Pending Challenge to FCRA Certificate Cancellation: Delhi HC quashes Notice against CHRI

The Delhi High Court has quashed an income tax notice issued against the Commonwealth Human Rights Initiative (CHRI), an NGO, during its pending challenge to the cancellation of its FCRA certificate. The court found the income tax notice, which sought to revoke the NGO's registration as a charitable institution, to be premature and legally untenable. The notice was based on the premise that the FCRA cancellation constituted a "specified violation." However, since the legality of the cancellation was still under judicial review, the court ruled that the income tax department could not act on it. This decision provides significant relief to the NGO and underscores the importance of finality in legal proceedings.