Balance of Convenience for Cancellation of Registration u/s 12 A of Income Tax Act in favour of CPR: SC dismisses SLP [Read Order]

The Supreme Court dismissed the special leave petition (SLP) filed by the Income Tax Department in the ruling that the balance of convenience for cancellation of registration under Section 12 A of the Income Tax Act, 1961 is in favour of Centre for Policy Research (CPR).

The issue before the Delhi High Court was whether the balance of convenience is presently in favour of the petitioner, and would any irreparable harm be caused to the petitioner, if an interim order, as sought by the petitioner, is not granted.

The Delhi High Court observed that “The cancellation of registration would definitely entail a consequence, which would result in disabling the petitioner from accepting any contributions from domestic contributors. The petitioner is an organization which survives on contributions. The employees engaged by the petitioner and its work depend on the contributions that it receives. Therefore, the balance of convenience, as it stands, is in favour of the petitioner.”

The SLP arose out of impugned final judgment and order dated 25-08-2023 in WPC No. 11270/2023 passed by the High Court of Delhi at New Delhi.

 A Two-Judge Bench comprising Justice Pamidighantam Sri Narasimha and Justice Aravind Kumar observed that “In view of the fact that the order impugned is interim in nature, we are not inclined to interfere with the impugned judgment passed by the High Court. Hence, the Special Leave Petition is dismissed.”

To Read the full text of the Order CLICK HERE

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