Law:

Section:

- Section 11 - Income-tax Act, 1961 JUDGMENT VENKATARAMIAH J. - The petitioner is a charitable trust. It was an assessee under the Income-tax Act, 1961 (hereinafter referred to as "the Act "), during the assessment year 1969-70. The Income-tax Officer was of the view that the assessee was not a genuine trust and hence was not entitled to the exemptions under the provisions of section 11of the Act. Against the order of assessment passed by the Income-tax Officer, the peti-tioner filed an appeal before the Appellate Assistant Commissioner. The Appellate Assistant Commissioner dismissed the appeal. But in the appeal preferred by the assessee before the Income-tax Appellate Tribunal, it was held that the assessee was a charitable trust and that, therefore, it was entitled to the exemptions under section 11of the Act. I am informed that a reference against the order of the Tribunal is pending before this court. 2. After the Tribunal rendered its judgment in the appeal, the Income-tax Officer who was directed to pass an order of assessment in the light of the decision of the Tribunal, passed an order on January 21, 1972, holding that because 75% of the income in excess of the income actually applied for charitable purposes had been invested as required by clause (b) of section 11(2) of the Act in respect of which notice had been given earlier under clause (a) of section 11(2), the entire surplus income was exempt from payment of income-tax. The Commissioner of Income-tax (hereinafter referred to as " the Commissioner "), on looking into the order passed by the Income-tax Officer on January 21, 1972, was of the view that the order was prejudicial to the interests of the revenue and, therefore, he issued a notice to the petitioner in exercise of his powers under section 263 of the Act calling upon the petitioner to show cause as to why the order dated January 21, 1972, passed by the Income-tax Officer should not be revised. Aggrieved by the said notice, the petitioner has filed this writ petition. 3. It is necessary for the purpose of this case to refer to the notice issued by the Commissioner. It reads as follows; "L. Rev. No. 136/72-CIT Office of the Commissioner of…

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