TaxTMI 
TaxTMI 
2015 (1) TMI 365
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....ing any opportunity to the Assessing Officer to examine the evidence filed first time before the Ld. CIT (A)-ll, Kanpur. 2. The learned Commissioner of Income Tax (Appeals)-II, Kanpur has erred in law and on facts of the case in allowing the benefit of section 10(23B) of Income Tax Act,1961 to the assessee on the basis of certificate issued by KVIC which was never produced before the Assessing Officer during the course of assessment proceedings. 3. The learned Commissioner of Income Tax (Appeals)-ll, Kanpur has erred in law and on facts of the case in allowing the claim of the assessee u/s 10(23B) of the Income Tax Act, 1961 whereas the same was rightfully rejected by the Assessing Officer in view of failure on the part of the assessee in....
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....d 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 w....
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....it is granted, it cannot be withdrawn. So far as the power of the Assessing Officer is concerned, the Assessing Officer cannot deny the benefit of exemption under section 10(23B) of the Act in the light of the certificate issued by the KVIC, but if he finds that the assessee's activities are in violation of the provisions of section 10(23B) of the Act, he can certainly inform the Commissioner, KVCI for necessary action for withdrawal of the certificate and thereafter the decision is to be left with the Commissioner and if the Commissioner withdraw or cancel the registration, the benefit of exemption under section 10(23B) of the Act can be denied. The certificate issued by the KVIC was not available before the Assessing Officer and it was fi....
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....0(23B) of the Act is concerned, we find that as per provisions of section 143(3) of the Act, the Assessing Officer 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. For the sake of reference, we extract the prov....
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....conditions subject to which 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 res....