2023 (10) TMI 1413

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....T(A)'] passed u/s 250 of the Income Tax Act (hereinafter referred to as the 'Act'). 2. The sole issue raised by the assessee in this appeal is relating to the denial of deduction under section 10(23B) of the Income Tax Act. 3. The provisions of section 10(23B) of the act, for the sake of ready reference, are produced as under: "(23B) any income of an institution constituted as a public charitable trust or registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India, and existing solely for the development of khadi or village industries or both, and not for purposes of profit, to the extent such income is attributable to the business of production, ....

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.... 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;]" 4. The assessee admittedly, is a society registered under the societies, registration act and is also registered with the Khadi and Village Industries Commission and is engaged in the promotion and development of khadi and has also been granted approval for thepurpose of claiming deduction under section 10 (23B)of the Act 5. The CPC while processing the return of income of the assessee denied the exemption claimed by the assessee of Rs.3315998/-. Being aggrieved, the assessee filed appeal before the CIT (A....

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.... to time. That even for subsequent period also, the approval was granted for 5 years i.e. 01/04/2021 to 31/03/2026. That for the assessment year 2020-21 and in earlier years, the exemption was not denied. The learned counsel, therefore, has submitted that the Ld. CIT(A) was not justified in denying the exemption to the assessee. The learned counsel in this respect has relied upon the decision of the Delhi Bench of the Tribunal in the case of Barapur gram, Udyog Vikas Samiti vs. ITO(E) Ward Bareilly, vide order dated 27.05.2022 in ITA No. 1505/Del/2021. 7. We find that the issue is squarely covered by the decision of the Tribunal in the case of "Barapur Gram Udyog Samiti" (supra), wherein, the coordinate Bench of the Tribunal, under simil....