Decided on August 07,2014

Ashoka Foods And Dehydrates Sansthan Appellant
ACIT Respondents


Sunil Kumar Yadav, Member (J) - (1.) THIS appeal is preferred by the assessee against the order of the ld. CIT(A), inter alia, on the following grounds: - 1. Because the CIT(A) has erred in law and on facts in confirming the order of the AO in wrongly interpreting the provisions of Sec. 10(23B) of the I.T. Act 1961 thereby denying the exemption to the assessee. 2.BECAUSE the CIT(A) has erred on facts and in law in confirming the order of the AO denying the exemption claimed u/s. 10(23B) inspite of all the condition necessary for claiming exemption having been fulfilled and complied with. Because the CIT(A) has not appreciated the facts that the AO has wrongly held that the assessee society is not engaged in development activities of KVIC. 3.BECAUSE the CIT(A) has erred on facts and in law in confirming the determination of total income at Rs. 47,91,745/ - and tax liabilities of Rs. 21,66,185/ - which is contrary to the provisions of law, hence the order passed be quashed. 4.BECAUSE in any case and in all circumstances of the case, the order passed is bad in law and be quashed. Because the CIT(A) has failed to appreciate that the said assessee society was already enjoying exemption u/s. 10(23B) of the Act 1961 upto A.Y. 2007 -08 and on expiry of the period had already applied for renewal on 14.05.2009 which renewal was forthcoming. 5.BECAUSE the CIT(A) has failed to appreciate that there being no failure on the part of the assessee to obtain the requisite approval from KVIC, as approved for earlier years the theory and principles of decline of legitimate expectation would be applicable and the CIT(A) should ought to have allowed the relief as claimed by exempting the entire income u/s. 10(23B) of the Act. 1961.
(2.) Though various grounds are raised, but they all relate to denial of exemption under section 10(23B) of the Income -tax Act, 1961 (hereinafter called in short "the Act") on account of non -production of certificate for exemption from Khadi and Village Industries Commission under the KVIC Act.
(3.) The facts in brief culled out from the orders of the lower authorities are that the assessee is engaged in the manufacturing and processing of spices. The return of income was filed claiming exemption under section 10(23B) of the Act on the pretext that its unit of manufacturing and processing of spices is duly registered with the Khadi and Village Industries Commission. The profit during the previous year under consideration has been credited into the capital fund account which is reflected in the balance sheet as on 313.2008.;

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