TMI Blog2016 (1) TMI 1022X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, the contention of the ld. counsel for the assessee that the assessee has made best efforts for obtaining the exemption certificate and in the light of its efforts, exemption may be granted, cannot be accepted, as before allowing exemption, assessee must have exemption certificate as per provisions of section 143(3) of the Act. Moreover, this exemption certificate is to be granted for a particular assessment year, therefore, it cannot be used for other assessment year for which it was not granted. In the light of the totality of the facts and circumstances of the case, we are of the considered opinion that the ld. CIT(A) has rightly denied the benefit of exemption under section 10(23B) of the Act to the assessee - Decided against assessee - ITA No.903/LKW/2014 - - - Dated:- 4-11-2015 - SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER For The Appellant by Shri Rakesh Garg, Advocate For The Respondent by Shri Amit Nigam, DR ORDER PER SUNIL KUMAR YADAV, JM. 1. This appeal is preferred by the assessee against the order of the Ld. CIT(A)-II, Kanpur on the following grounds: 1. Because the QT(A) has erred in law a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al of the relevant provisions of the Act, we find that separate clause for assessment of the Institutions falling under section 10(23B) of the Act has been provided in sections 139 and 143 of the Act. As per provisions of section 10(23B) of the Act, if the institution existing solely for development of Khadi and Village Industries or both fulfils other required conditions prescribed in sub-section (23B) of section 10 of the Act, are entitled for exemption, if the institution is approved by the prescribed authority. The approval once granted can be withdrawn if the activities of the institution are found in contravention to the provisions of section 10(23B) of the Act. We have also examined the provisions of section 143(3) of the Act and we find that in the case of an institution referred to in clause (23B) of section 10 of the Act, which is required to furnish the return of income under sub-section (4C) of section 139 of the Act, no order making an assessment of total income or loss of such institution shall be made by the Assessing Officer without giving effect of provisions of section 10 of the Act unless the Assessing Officer has intimated the Central Government or the prescribe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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; SECTION 139(4C): (4C) Every- (a) research association referred to in clause (21) of section 10; (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 10sub-clause (iiiad) or subclause (vi) or any hospital o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (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 hospital or other medical institution referred to in sub-clause (via) of clause (23C) of section 10, which is required to furnish the return of income under sub-section (4C) of section 139, no order making an assessment of the total income or loss of such scientific research association, news agency, association or institution or fund or trust or university or other educational institution or any hospital or other medical institution, shall be made by the Assessing Officer, without giving effect to the provisions of section 10, unless- (i) the Assessing Officer has intimated the Central Government or the prescribed authority the contravention of the provisions of clause (21) or clause (22B) or clause (23A) or clause (23B) or sub-clause (iv) or sub-clause (v) or sub-c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g thereby, if an assessee obtains approval from the Commission under section 10(23B) of the Act, the Assessing Officer shall not make an assessment of the total income of the assessee without giving effect to the provisions of section 10 of the Act. But the benefit of section 10 of the Act can also be denied, if the Assessing Officer has noted that the said institution has acted in contravention of the provisions of clause (23B) of section 10 of the Act, but before denial of exemption, the Assessing Officer is required to intimate the Central Government or the prescribed authority about the contravention of provisions of clause (23B) of section 10 of the Act. The benefit of exemption can also be denied by the Assessing Officer if the approval granted to such institution has been withdrawn or notification issued in this regard has been rescinded. Meaning thereby, during the course of assessment proceedings, the Assessing Officer is required to examine the activities of the assessee and to ascertain the fact whether the assessee/institution has been granted approval by the prescribed authority for the relevant assessment year. 11. Having read the aforesaid provisions of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that once recommendations are made, exemption certificate will certainly be granted to the assessee. Therefore, the contention of the ld. counsel for the assessee that the assessee has made best efforts for obtaining the exemption certificate and in the light of its efforts, exemption may be granted, cannot be accepted, as before allowing exemption, assessee must have exemption certificate as per provisions of section 143(3) of the Act. Moreover, this exemption certificate is to be granted for a particular assessment year, therefore, it cannot be used for other assessment year for which it was not granted. In the light of the totality of the facts and circumstances of the case, we are of the considered opinion that the ld. CIT(A) has rightly denied the benefit of exemption under section 10(23B) of the Act to the assessee. We accordingly confirm his order. Accordingly the assessee fails. 4. Since the Tribunal has taken a particular view in similar set of facts, we find no justification to take a contrary view in this appeal. Accordingly, following the same, we decide the issue against the assessee and confirm the order of Ld. CIT(A), who has rightly denied the benefit of exem ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
