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2016 (1) TMI 1022 - ITAT LUCKNOWExemption claimed u/s.10(23B) denied - development of khadi or village industries or both (KVIC) - Held that:- In AY 2008-09 an identical issue was raised before the Tribunal and the Tribunal has adjudicated the issue in the light of the relevant provisions of the Act and has concluded that the assessee is not entitled for the benefit of exemption u/s 10(23B) of the Income Tax Act as the assessee could not furnish exemption certificate for the impugned assessment year duly granted by the prescribed authority. He has simply placed reliance upon the earlier certificate granted for assessment year 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. Therefore, it cannot be presumed or assumed that once recommendations are made, exemption certificate will certainly be granted to the assessee. Therefore, the contention of the ld. counsel for 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. Moreover, this exemption certificate is to be granted for a particular assessment year, therefore, it cannot be used for other assessment year for which it was not granted. In the light of the totality of the facts and circumstances of the case, we are of the considered opinion that the ld. CIT(A) has rightly denied the benefit of exemption under section 10(23B) of the Act to the assessee - Decided against assessee
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