TMI Blog2015 (1) TMI 365X X X X Extracts X X X X X X X X Extracts X X X X ..... of benefit u/s 10(23B) – Held that:- The AO cannot out rightly deny the benefit of exemption claimed under section 10(23B) of the Act if KVIC certificate is filed before him, unless he reports the matter to the Commissioner, KVIC for cancellation or withdrawal of certificate, if he notice that the activities of the assessee are in contravention of the provisions of section 10(23B) of the Act - But it does not mean that the Assessing Officer is debarred from making necessary enquiries with regard to the activities of the assessee while allowing exemption under section 10(23B) of the Act if KVIC certificate is filed before him - Since KVIC certificate was filed for the first time before the CIT(A), the AO has not applied his mind to the activities of the assessee, therefore, the matter may be restored back to the file of the AO with a direction to re-adjudicate the issue of exemption claimed u/s 10(23B)of the Act in the light of certificate issued by the KVIC – thus, the order of the CIT(A) is set aside and the matter is remitted back to the AO for re-adjudication – Decided in favour of revenue. - ITA No. 639/LKW/2013 - - - Dated:- 29-9-2014 - Shri Sunil Kumar Yadav And Shri. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. CIT(A) granted benefit of exemption under section 10(23B) of the Act to the assessee. 4. Aggrieved, the Revenue has preferred an appeal before the Tribunal and the ld. D.R. has contended that before the Assessing Officer assessee could not file the certificate issued by the KVIC for the impugned assessment year, but the KVIC certificate was filed first time before the ld. CIT(A) and the ld. CIT(A) without affording any opportunity of being heard to the Assessing Officer or without calling any remand report, has admitted the same and granted benefit of exemption to the assessee. The ld. D.R. has further contended that the Assessing Officer is required to examine the claim of exemption in the light of KVIC certificate. Since the Assessing Officer has denied the benefit of exemption in the absence of KVIC certificate, the matter may be restored back to the Assessing Officer for verification of the activities undertaken by the assessee, which entitled it for registration by the KVIC. 5. The ld. counsel for the assessee, on the other hand, has submitted that during the course of assessment proceedings, KVIC certificate was not available with the assessee and it was receive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the certificate issued by the KVIC. Therefore, in the interest of justice, the matter may be restored to the file of the Assessing Officer. 2. Having given a thoughtful consideration to the rival submissions and from a careful perusal of the orders of the authorities below, we find that undisputedly the certificate issued by the KVIC was not filed before the Assessing Officer, as it was not available with the assessee. It was obtained during the course of appellate proceedings and it was filed before the ld. CIT(A). When new evidence was filed before the ld. CIT(A), the ld. CIT(A) ought to have called a remand report from the Assessing Officer in this regard, but the ld. CIT(A), instead of calling for a remand report, has allowed exemption under section 10(23B) of the Act having relied upon the certificate issued by the KVIC. 3. It is also an undisputed fact that the Assessing Officer has not applied his mind with regard to the exemption claimed under section 10(23B) of the Act in the light of the KVIC certificate, as it was not filed before him. Therefore, the claim of exemption of the assessee should be examined in the light of the certificate issued by the KVCI, by the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such institution was approved, it may, at any time after giving a reasonable opportunity of showing cause against the proposed withdrawal to the concerned institution, by order, withdraw the approval and forward a copy of the order withdrawing the approval to such institution and to the Assessing Officer. Explanation.-- For the purposes of this clause,-- (i) Khadi and Village Industries Commission means the Khadi and Village Industries Commission established under the Khadi and Village Industries Commission Act, 1956 (61 of 1956); (ii) khadi and village industries have the meanings respectively assigned to them in that Act; PROVISO TO SETION 143(3): Provided that in the case of a- (a) scientific research association referred to in clause (21) of section10; (b) news agency referred to in clause (22B) of section 10; (c) association or institution referred to in clause (23A) of section 10; (d) institution referred to in clause (23B) of section 10 ; (e) fund or institution referred to in sub-clause (iv) or trust or institution referred to in sub-clause (v) or any university or other educational institution referred to in sub-clause (vi) or any hos ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
