Natural justice challenge fails where notice was served and opportunity was available but not used in exemption approval proceedings.

Rejection of approval under section 10(23-C)(vi) was not interfered with because the record showed notice was issued and served through multiple modes, including at the offices connected with the educational institutions, and the Court found that an opportunity of hearing had been afforded but not availed. The petitioner's objection of inadequate notice and breach of natural justice therefore failed. The Court held that the petitioner should first have explained its non-appearance before the authority rather than invoke writ jurisdiction directly, and it dismissed the writ petition while granting liberty to seek fresh consideration before the Chief Commissioner of Income Tax in accordance with law.

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Issues: Whether the rejection of the petitioner's application for approval under section 10(23-C)(vi) of the Income-tax Act, 1961 was liable to be interfered with on the ground of inadequate opportunity of hearing and breach of natural justice.

Analysis: The application for exemption was considered under section 10(23-C)(vi) for assessment purposes. The record showed that the prescribed authority issued notice, attempted service at the Lucknow office, sent a copy by courier, and also caused service at the Bareilly office where the educational institutions were located. The petitioner's case was that notice was not properly served and that it had no effective opportunity to explain that the institutions were run solely for education and not for profit. The Court treated the matter as one where an opportunity had been afforded but not availed, and observed that the petitioner ought first to have approached the authority with its explanation for non-appearance instead of directly invoking writ jurisdiction.

Conclusion: The challenge to the rejection order was not accepted, and the writ petition was dismissed, with liberty to the petitioner to move the Chief Commissioner of Income Tax for fresh consideration in accordance with law.

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