Section 10(23C)(vi) of the Income-tax Act, 1961—Exemption- Educational institution— Notice issued by the authority other than the prescribed authority is not valid and consequential order passed by CIT(E) is without jurisdiction.

Facts: Whether ITAT is right in deciding that show cause-notice should be signed by CIT(E) in spite of the fact that only requirement under 13th proviso to the section 10(23C) has complied by conducting personal hearing?

Held, that it is settled proposition of law that the notice issued by the authority other than the prescribed authority is not valid and consequential order passed by CIT(E) is without jurisdiction. The show-cause notice confers the jurisdiction to proceed and to pass the order. In case the notice itself is not valid then the jurisdiction assumed by the prescribed authority based on the invalid notice become invalid and consequential order passed by the authority is invalid and void abinitio for want of jurisdiction. Further, invalid show-cause notice vitiates the proceeding and consequential order. Hence,order passed by the ld. CIT(E) is invalid and liable to quash on this ground. - CIT V/s MODERN SCHOOL SOCIETY - [2018] 3 ITCD Online 119 (RAJ)