In a relief to the Commonwealth Human Rights Initiative (CHRI), the Delhi High Court on Tuesday set aside a notice issued under the Income Tax Act that sought to cancel the NGO’s registration as a charitable institution.
The bench of Justices V Kameswar Rao and Vinod Kumar set aside the notice and allowed CHRI’s petition. The I-T Department had cited the NGO’s earlier FCRA cancellation by the Centre while issuing the notice. FCRA cancellation implies the organisation can’t accept foreign contributions. Notably, the NGO’s Foreign Contribution Regulation Act (FCRA) registration was cancelled twice by the Centre through the MHA. It was first cancelled in April 2022, which was challenged by the NGO before the HC. The court had quashed the Centre’s order on the ground it was not reasoned, directing it to reconsider the case. Following reconsideration, the Centre cancelled the FCRA registration a second time through an order in September 2024. This is now under challenge before the HC, and is due to be heard next on September 14.
Pending the challenge, the I-T Department on July 29 issued notice to CHRI under Section 12AB(4)(a), which deals with revocation of IT Act registration certificate granted in case of specified violations — that is, if the institution violates any other law. The Commissioner of I-T (Exemption), Delhi, issued a hearing notice to CHRI under Section 12AB(4)(a) proposing cancellation of registration under Section 12A of the IT Act — its designation as a charitable organisation — on the ground that FCRA registration cancellation is a “specified violation” under Section 12AB(4)(f).
Senior advocate Arvind Datar, appearing with advocate Kabir Dixit, in their challenge to the I-T department’s notice, highlighted that such a notice proposing cancellation of their IT Act registration at this stage is premature and legally untenable.
