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2014 (11) TMI 274 - AT - Income TaxDenial of exemption u/s 10(23B) - Non-production of certificate for exemption from Khadi and Village Industries Commission under the KVIC Act – Held that:- Separate clause for assessment of the Institutions falling under section 10(23B) of the Act has been provided in sections 139 and 143 of the Act - Institution can claim exemption of income attributable to the business or production, sale or marketing of Khadi or products of Village Industries, if it obtains approval from the Khadi and Village Industries Commission - the assessee could not place exemption certificate for the AY – even before the Tribunal, the assessee could not furnish exemption certificate for the AY duly granted by the prescribed authority - He has simply placed reliance upon the earlier certificate granted for AY 2007-08 - He has also placed reliance upon the recommendation of the U.P. Khadi and Village Industries Board, Planning Division, Lucknow vide letter dated 16.6.2009 to the State Director, Khadi and Village Industries Commission - This recommendation was made in June 2009 and till date exemption certificate has not been granted to the assessee - it cannot be presumed or assumed that once recommendations are made, exemption certificate will certainly be granted to the assessee - the contention of the assessee that the assessee has made best efforts for obtaining the exemption certificate and in the light of its efforts, exemption may be granted, cannot be accepted, as before allowing exemption, assessee must have exemption certificate as per provisions of section 143(3) of the Act - the exemption certificate is to be granted for a particular AY, therefore, it cannot be used for other AY for which it was not granted – thus, CIT(A) has rightly denied the benefit of exemption u/s 10(23B) of the Act – Decided against assessee.
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