9911796707
TMI Blog2023 (10) TMI 1413X X X X Extracts X X X X X X X X Extracts X X X X ..... bserved that the time period for which the certificate has to be granted is not within the control of the assessee. That, in any case, it was only a technical violation for which the assessee could not be penalized by denying the exemption, which otherwise is allowable to the assessee as held reason for denying the exemption by the AQ 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, hold that the assessee is entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d (ii) the institution is, for the time being, approved for the purpose of this clause by the Khadi and Village Industries Commission: Provided further that the Commission shall not, at any one time, grant such approval for more than three assessment years beginning with the assessment year next following the financial year in which it is granted. Provided also that where the institution has been approved by the Khadi and Village Industries Commission and subsequently that Commission is satisfied that (i) the institution has not applied or accumulated its income in accordance with the provisions contained in the first proviso; or (ii) The activities of the institution are not being carried out in accordance with all or any of the conditions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roviso to section 10(23B), the Khadi Commission, was not supposed to grant approval at any one point of time for more than three consecutive assessment years. He, in this respect observed that in the case of the assessee, the approval/ renewal of approval was granted for 5 consecutive years. He, therefore, held that the case of the assessee was hit by violation of second proviso to section 10 (23B) of the Act. 6. Before us, the Ld. Counsel for the assessee has submitted that it was not within the control of the assessee to get the approval or renewal for three years only. That it was the prerogative of the Commission to grant approval/renewal for the period as per the policy of the Commission. That the assessee is registered with the Khadi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the Tribunal, for the sake of ready reference, is reproduced as under 7. Therefore, the 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) of the Act. The reason for denying the exemption by the AQ 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 pen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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