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2022 (6) TMI 444 - AT - Income TaxExemption claimed u/s.10(23B) - Mandatory approval from Khadi and Village Industries Commission - AO was of the opinion that in the present case approval was granted for more than three assessment years and the condition for claiming exemption u/s. 10(23B) was not fulfilled - As per CIT certificate issued by the Khadi and Village Industries Commission was valid from 01.04.2016 to 31.03.2021 beginning from the FY 2016-17 relevant to AY 2017-18 onwards and, therefore, he held that assessee is not entitled to claim exemption for AY 2016-17 - HELD THAT:- Certificate issued by Khadi & Village Industries Commission clearly show that it relates to the period from 11.06.2012 to 31.03.2016 and followed by the letter issued by the Commission to the ITO, Bijnore, Uttar Pradesh clearly shows that the assessee is entitled to claim exemption u/s. 10(23B) - The reason for denying the exemption by the AO is that the Commission has given certificate to the assessee for more than three years. It is pertinent to note that the time period for which the certificate has to be granted is not within the control of the assessee. In any case it is only a technical violation for which the assessee could not be penalized by denying the exemption otherwise allowable to the assessee. Thus, we hold that the assessee is entitled for exemption u/s. 10(23B) of the Act. Accordingly, the Assessing Officer is directed to allow the claim for exemption u/s. 10(23B) as claimed by the assessee. Appeal of assessee allowed.
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