Ravi Rishi Educational Society V. The Chief Commissioner of Income Tax Officer, Hyderabad \\u2013 1

WP/7201/2010

AI Insights

The case involves the Ravi Rishi Educational Society, which sought a writ of mandamus against the Chief Commissioner of Income Tax Officer, Hyderabad, and others, to challenge an order that denied them tax exemptions under Section 10(23C) of the Income Tax Act. The society, running a college, had applied for tax exemption retroactively from the assessment year 2003-2004. The initial application was not responded to, leading to a follow-up representation. A show cause notice was eventually issued, but the society claimed it was not served properly, resulting in an order being passed without their response, which they argued violated the principles of natural justice. The court agreed with the petitioner, setting aside the impugned order and remanding the case for a fresh decision after allowing the petitioner to respond.

• Counselvise Citation: [2010] 140 COUNSELVISE.COM (IT) 797122 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 26-04-2010
• Assessment Year: misc
• Laws Referred To: Income Tax Act, Andhra Pradesh (Telangana Areas) Public Societies Registration Act, 1350 Fasli
• Result in Favour of: Applicant
• Court: HIGH COURT
• Keywords: Show cause notice; Violation of natural justice; Writ of Mandamus; Illegal and arbitrary; Benefit under Sec. 10(23C); Exemption under Sec. 12A
• Section: 12A; 10(23C); 10(23C)(vi)

Judgement Text

"IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE TWENTY SIXTH DAY OF APRIL TWO THOUSAND AND TEN PRESENT THE HON'BLE MRS. JUSTICE T.MEENA KUMARI AND THE HON'BLE MR JUSTICE NOOTY RAMAMOHANA RAO WRIT PETITION NO : 7201 of 2010 Between: Ravi Rishi Educational Society, G2, SBI Colony, Bagh Amberpet, Hyderabad, Rep. By its Selection Chairman, Sri N.Raja Babu ..... PETITIONER AND The Chief Commissioner of Income Tax Officer, Hyderabad –1, IT Towers, AC Towrs, Hydrabad and others .....RESPONDENTS The Court made the following : ORAL ORDER: (per THE HON’BLE MRS. JUSTICE T.MEENA KUMARI) Seeking a writ of mandamus to declare the order dated 16.10.2009 passed by the first respondent as illegal and arbitrary and to consequently set aside the same holding that the petitioner is entitled to benefit under Sec. 10(23C) of the Income Tax Act and direct the first respondent to grant approval in terms of Sec. 10(23C)(vi) of the Income Tax Act, the present writ petition is filed. The petitioner is an Educational Society registered under The Andhra Pradesh (Telangana Areas) Public Societies Registration Act, 1350 Fasli and an assessee on the rolls of the third respondent. The society is running a college in the name of Aurora’s Scientific Technological & Research Academy, Bandlaguda, Hyderabad and since the assessment year 2003-3004, it is filing returns claiming exemption under Sec. 12A of the Income Tax Act. Accordingly, the petitioner made an application on 6.2.2006 for the grant of exemption from 2003-2004 onwards and since nothing was heard from the respondents, the petitioner submitted another representation dated 13.10.2008. Thereafter, the first respondent issued show cause notice mentioning objections in certain clauses of the aims and objects and posted the matter for hearing on 14.10.2009. But to the utter surprise of the petitioner, it received the order dated 16.10.2009 on 22.10.2009, to the effect that there was no response to the show cause notice issued by the first respondent, without verifying as to the service of the show cause notice on the petitioner. Thus, the exemptions claimed by the petitioner society was rejected. Heard the learned counsel for the petitioner and the learned Standing Counsel for Income Tax. The singular grievance of the petitioner is that the show cause notice said to have been issued by the first respondent with regard to the objections in the aims and objects of the petitioner society, was not served on the petitioner and without service of the notice, the impugned order came to be passed, which is in violation of the principles of natural justice. Therefore, in the facts and circumstances of the case, without adverting to any of the contentions raised herein, we are of the considered view that an opportunity has to be given to the petitioner to put forth its case before the respondents. Therefore, while setting aside the order impugned herein, the petitioner is permitted to put forth its case pursuant to the show cause notice issued by the first respondent within a period of two weeks from the date of receipt of a copy of this order and the first respondent is directed to consider and pass orders afresh within a period of four weeks thereafter, providing opportunity to the petitioner to put forth its case. With these directions, the writ petition is disposed of. No order as to costs. ____________________ Justice T.Meena Kumari __________________________ Justice Nooty Ramamohana Rao April 26, 2010 CC within a week //BO// MAS "