2022 (6) TMI 444

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....hs. The appeal of the assessee is disposed off based on the written submission furnished by the assessee. 2. The assessee in its appeal raised the following grounds:- 1. "That the AO has misinterpret the certificate of registration of society which was for five years and ignore the exemption certificate u/s. 10(23B) which was only for AY 2016-17. Hence, order passed by AO having bundle of mistake suo moto which can be rectify u/s. 154, which is not done by AO hence assessment made by AO is arbitrary, unjust and not according to law and Ld. CIT(A) confirmed the addition ignore the relevant facts and also bad in law. 2. That the exemption certificate given by Khadi and Gram Industry Commission, Mumbai u/s. 10(23B) is crys....

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.... Khadi and Village Industries Commission was valid from 01.04.2016 to 31.03.2021 beginning from the FY 2016-17 relevant to AY 2017-18 onwards and, therefore, he held that assessee is not entitled to claim exemption for AY 2016-17. 5. The assessee in its written submissions stated as under: "It is submitted that in the above case, the assessee is cooperative society registered under Society Registration Act, 21, 1860, the assessee further applied for exemption u/s. 10(23B). The certificate of the society registration was already available at the time of hearing before the CIT(A) vide Letter No. DOM/Khadi/BGVS/2018-19 dated 05.02.2019 directly by the Khadi and Village Industries Commission, Divisional Office, Meerut. The ....

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....e and expenditure account and balance sheet declaring total sales of Rs. 288.47 crores and income of Rs. 6.54 crores - Assessing Officer passed order of assessment on 29.12.2006 accepting claim of assessee to benefit of exemption under section 10(23B) after being duly satisfied that assessee had fulfilled requisite conditions - Subsequently on 21.03.2011 Assessing Officer issued notice under section 148 seeking to reopen assessment on ground that books of account filed with return indicated that activities carried on by assessee did not cover any public charity but were commercial activities; besides assessee failed to provide details of expenditure incurred to achieve approved objects - Whether since entire basis for reopening assessment w....

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....ecord before me. Relying on this certificate the Ld. CIT(A) held that the assessee is not entitled for exemption u/s. 10(23B) of the Act which is misplaced. As a matter of fact Khadi and Village Industries Commission had issued certificate to the assessee from 11.06.2012 to 31.03.2016 and the assessee is entitled to claim exemption u/s. 10(23B) for the AY 2016-17. Further the Khadi and Village Industries Commission, Divisional Officer, Meerut had also written a letter dated 28.01.2019 to the Assessing Officer the ITO, Bijnore (U.P.) to consider the assessee for granting exemption u/s. 10(23B) for the AY 2016-17. The contents of the letter are as under:- 7. Therefore, the certificate issued by Khadi & Village Industries Commission clearly....

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....ालय (भारत सरकार):- Ministry of Micro, Small & Medium Enterprises, Govt. of India मण्डलीय कार्यालय, मेरठ divisional Office, Meerut Date 28.01.2 No.D.OM/Khali/BGVS/2018-19/ To The Income Tax Officer, Income Tax Office BUNOR (U.P.) Sub: Approval letter for exemption from payment of Income Tax issued under section 10 (23-B) of the Income tax Act to M/s Barapur Gramodyog Vikas Samiti, H.O.Industrial Sir, Area Nagina Dist. Bijnor (U.P.), which is engaged in the development of Khadi and Village idustries. This is to inform that Barapur Gramodyog ....