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TMI Blog2022 (6) TMI 444X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty which is for five years and it is nothing to do with exemption 10(23B) of I.T. Act. Therefore, addition made by AO and confirmed by CIT(A) against the facts and law. 3. That Ld. CIT(A) has committed error in para 5.3 that exemption certificate is available for the FY 2016-17 i.e. AY 2017-18. However, exemption certificate was for the AY 2016-17. 4. That the assessee has right to add, delete or modify any grounds of appeal during the proceedings. 3. The AO while completing the assessment noticed that the assessee claimed exemption u/s. 10(23B) of the Act as the assessee was engaged in the business of production, sale, etc. of Khadi and Products of Village Industries. The AO was of the view that in view of proviso to section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y available to him and decide the case on the basis of registration of Society Act which is not absolutely correct because the assessee has already obtained certificate vide Regn. No. 1872/1981-82 from Khadi and Village Industries Commission. Therefore, for wants of certificate the assessee requests your honour to kindly accept the contention of the assessee. Here it is further mentioned that the assessee has applied more than five to six months before but due to the Government and Khadi and Village Industries Commission, the assessee could not file the certificate in time. Even, at the time of CIT(A) has decide the appeal he has not gone to the record which can be obtained by the AO in remand proceedings. The assessee rely upon the Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was to be held that primary requirements of proviso to section 147 for reopening an assessment beyond a period of four years, had not been fulfilled - Held, yes - Whether line of enquiry which Assessing Officer sought to pursue in regard to expenditure incurred by assessee was extraneous to purpose of section 10(23B), as section 10(23B) only requires that an institution must exist solely for purpose of developing Khadi and Village Industries - Held, yes - Whether in view of above and further in view of fact that Assessing Officer had completely ignored objections which were filed by assessee, it was to be held that reopening of assessment was purely based upon a change of opinion by Assessing Officer and could not be permitted in law - Hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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) of the Act. 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, I 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(23 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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