Premature administrative action: notice premised on pending FCRA cancellation quashed; authorities may proceed after final adjudication.

Whether an income-tax notice under Section 12AB(4)(a) issued because an organisation's FCRA certificate was cancelled while that cancellation was pending judicial challenge was premature: the court reasoned that the notice relied on a decision still under adjudication, so sustaining administrative action before final determination would be inappropriate; consequently the notice dated 29.07.2025 was quashed as premature and relief granted to the petitioner, with liberty for respondents to act after conclusion of the proceedings challenging the FCRA cancellation.

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Issues: Whether a notice issued under Section 12AB(4)(a) of the Income-tax Act, 1961 on the ground of cancellation of an organisation's FCRA certificate, while the challenge to that cancellation is pending adjudication, is premature and liable to be set aside.

Analysis: The notice under Section 12AB(4)(a) was issued because the FCRA certificate had been cancelled; the cancellation itself was the subject matter of pending adjudication in a writ petition. Given that the factual and legal basis for the notice is the cancellation decision which remains under judicial consideration, proceeding on that basis would be premature. The appropriate course is to refrain from sustaining an administrative notice that depends on a decision not finally adjudicated and to permit the authorities to act after the challenge to the cancellation has concluded.

Conclusion: The notice dated 29.07.2025 issued under Section 12AB(4)(a) of the Income-tax Act, 1961 is quashed as premature; relief is granted in favour of the petitioner with liberty to the respondents to proceed in accordance with law after conclusion of the proceedings challenging the FCRA cancellation.

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