Revenue's appeal allowed, case sent back for re-adjudication under sec 10(23B)

The Tribunal allowed the Revenue's appeal, directing the matter to be restored back to the Assessing Officer for re-adjudication of the exemption claim under section 10(23B) in light of the KVIC certificate. The Tribunal emphasized the necessity for the Assessing Officer to have the opportunity to examine the claim of exemption and highlighted that necessary inquiries should be made to ensure compliance with the provisions. The appeal was allowed for statistical purposes.

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Issues:
1. Admission of fresh evidence in violation of Rule 46 A of I.T. Rules.
2. Allowing benefit of section 10(23B) based on certificate not produced before Assessing Officer.
3. Granting claim of exemption u/s 10(23B) without producing certificate before Assessing Officer.
4. Quashing order of Ld. CIT (A) and restoring Assessing Officer's order.

Issue 1: Admission of Fresh Evidence
The appeal was against the order of the ld. CIT(A) regarding the admission of fresh evidence in the form of a certificate issued by KVIC. The Revenue contended that the evidence was admitted without giving the Assessing Officer an opportunity to examine it, thus violating Rule 46 A of I.T. Rules.

Issue 2: Benefit of Section 10(23B)
The ld. CIT(A) allowed the benefit of section 10(23B) based on a certificate from KVIC, which was not presented before the Assessing Officer during the assessment proceedings. The Revenue argued that the ld. CIT(A) erred in granting the benefit without the certificate being produced before the Assessing Officer.

Issue 3: Granting Exemption Without Certificate
The ld. CIT(A) granted exemption under section 10(23B) to the assessee based on the KVIC certificate, which was not available during the assessment by the Assessing Officer. The Revenue contended that the claim of exemption should have been rejected due to the absence of the certificate before the Assessing Officer.

Issue 4: Quashing Ld. CIT (A) Order
The Revenue sought to quash the order of the ld. CIT(A) and restore the Assessing Officer's order. The Tribunal noted that the KVIC certificate was not presented before the Assessing Officer, but only before the ld. CIT(A), leading to a lack of examination by the Assessing Officer regarding the exemption claimed under section 10(23B).

The Tribunal found that the certificate from KVIC was not available during the assessment by the Assessing Officer but was presented for the first time before the ld. CIT(A). The ld. CIT(A) granted the exemption without calling for a remand report from the Assessing Officer, which was deemed necessary. The Tribunal emphasized that the Assessing Officer should have the opportunity to examine the claim of exemption in light of the KVIC certificate.

Regarding the jurisdiction of the Assessing Officer to deny the benefit under section 10(23B), the Tribunal highlighted that while the Assessing Officer cannot outrightly deny the benefit if the KVIC certificate is filed, necessary inquiries should be made to ensure compliance with the provisions. The Tribunal, in line with the provisions of section 143(3) and section 10(23B) of the Act, directed the matter to be restored back to the Assessing Officer for re-adjudication of the exemption claim in the light of the KVIC certificate. As a result, the appeal of the Revenue was allowed for statistical purposes.

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