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2015 (1) TMI 11 - HC - Income TaxShow cause notice - Opportunity of being heard Withdrawal of exemption u/s 10(23C)(vi) Held that:- The content of the letter indicates that the petitioner is requested to attend the office on that date in person or through a representative duly authorised in this behalf, thereby commencement of very proceeding itself is without giving show cause notice - apart from that, with regard to investment of ₹ 37 crores made by the real estate agent, it is noticed by the AO that there are some irregularities - as such, he sought to opine that there is non-compliance of Section 11(5) of the Act and thereby tried to exercise the power in withdrawing the recognition granted seeking for an exemption from payment of income tax by the petitioner as a charitable trust - the Assessing Authority shall on the facts available as on today, go into the question whether assessee has violated the terms and conditions of Section 11(5) of the Act subject to which, exemption was granted - If it records a finding that there is violation of Section 11(5) of the Act, then it shall bring the said violation to the notice of the prescribed authority - if the prescribed authority decides to rescind the order of exemption granted earlier, it shall do so and shall send a copy of the same to the Assessing Authority as well as to the assessee - this is the clear indication of requirement in following the principles of natural justice thus, the order is set aside and the matter is remitted back to the Assessing authority Decided in favour of assessee.
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