Invalid show-cause notice by incompetent authority vitiates withdrawal of educational approval under section 10(23C)(vi)

Withdrawal of approval under section 10(23C)(vi) requires a valid show-cause notice issued only after the prescribed authority forms the mandatory satisfaction contemplated by the thirteenth proviso. A notice issued and signed by a subordinate officer, without reflecting the independent application of mind of the prescribed authority, does not validly initiate proceedings and vitiates the jurisdiction to act further. On that basis, the show-cause notice was held invalid and the consequential withdrawal of approval was held to be without jurisdiction and liable to be quashed.

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Issues: Whether the show-cause notice initiating withdrawal of approval under section 10(23C)(vi) was valid when it was issued and signed by the Deputy Commissioner of Income Tax (Headquarters) instead of the prescribed authority, and whether the consequential withdrawal order was without jurisdiction.

Analysis: The thirteenth proviso to section 10(23C)(vi) vests the power to rescind notification or withdraw approval in the Government or the prescribed authority, and the mandatory precondition is the satisfaction of that authority before initiating proceedings. The notice in question was issued by a subordinate officer as per directions, and its language did not reflect the independent satisfaction or application of mind of the prescribed authority. Since the jurisdiction to proceed depended on a valid notice issued on the basis of the prescribed authority's satisfaction, a notice issued by an incompetent authority vitiated the proceedings.

Conclusion: The show-cause notice was held to be invalid, and the consequential order withdrawing approval was held to be without jurisdiction and liable to be quashed. The appeal was dismissed.

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