Case Law Details
Population Services International Vs CIT (ITAT Delhi)
ITAT Delhi held that approval granted under section 10(23C)(iv) of the Income Tax Act cannot be withdrawn on the allegation of violation of certain compliance conditions, once the threshold conditions is duly satisfied.
Facts- The assessee was granted registration u/s. 12A of the Act on 06.12.1991 and u/s. 80G of the Act on 20.09.2007. The assessee was granted approval u/s. 10(23C)(iv) by the Central Board of Direct Taxes (CBDT) vide notification issued on 31.01.2007 and such approval was renewed in subsequent assessment years. In course of scrutiny assessment, AO while verifying the information gathered and available on record, was of the view that the assessee has violated the conditions of approval granted under section 10(23C)(iv) of the Act.
On the basis of observations, AO sent a proposal for withdrawal of approval granted u/s. 10(23C)(iv) of the Act. Accepting the proposal of AO, learned CIT (Exemption) granted approval for special audit and the special audit was entrusted to a chartered accountant firm.
Learned CIT(Exemption) issued a show-cause notice to the assessee to explain, why the approval granted u/s. 10(23C)(iv) of the Act should not be revoked.
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