Assessee charitable trust was granted approval under section 10(23C)(iv) A search was conducted on assessee pursuant to which a notice under section 153A was issued.\u00a0 In pursuance of notice, assessee filed an settlement application under section 245C before Settlement Commission\u00a0\u00a0\u00a0 which was\u00a0\u00a0 accepted. Based on\u00a0 initiation of proceeding under section 245C before Settlement Commission,\u00a0 DGI (Inv) issued a show cause notice\u00a0 to assessee proposing for withdrawal of approval granted to it under section 10(23C)(iv).\u00a0 He, further, proceeded to pass an order effecting withdrawal of approval under section 10(23C)(iv) of the Act.\u00a0 The\u00a0\u00a0 assessee filed writ petition and contended that when issue regarding violation of conditions of section 10(23C) by assessee was pending before ITSC, DGI (Inv) had no jurisdiction to issue said show cause notice\u00a0 in view of bar under section 245F(2). Settlement commission had completed proceedings and passed an order under section 245D in favour of assessee. Writ petition filed against\u00a0 order of Settlement Commission was also set aside. Allowing the petition the Court held that\u00a0\u00a0 proceedings before Settlement Commission on which DGI(Inv) placed reliance to issue said show cause notice\u00a0 did not exist on facts, impugned show cause notice\u00a0 issued by DGI (Inv) \u00a0for withdrawal of approval under section 10(23C) and subsequent order passed withdrawing such approval under said section were unjustified and same were to be quashed.\u00a0 When application under section 245C made by trust is allowed to be proceeded with Settlement Commission, then Settlement Commission\u00a0\u00a0 have exclusive jurisdiction to perform functions of Income-tax authority as provided under section 245F\u00a0 of the Act. Accordingly the order of\u00a0 DGI (Inv)\u00a0 was quashed. \u00a0(AY. 2005-06 to 2011-12)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 245D : Settlement Commission-Educational institution-Application is allowed to be proceeded with-Settlement Commission have exclusive jurisdiction to perform functions of Income-tax authority as provided under section 245F of the Act-Withdrawal of exemption by Director General (Inv.) was held to be not valid. [S. 10(23C)(iv), 132, 153A, 245C, 245F(2) Art, 226] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-20060","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-5dy","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/20060","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=20060"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/20060\/revisions"}],"predecessor-version":[{"id":20061,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/20060\/revisions\/20061"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=20060"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=20060"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=20060"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}