Ashoka Foods & Dehydrates Sansthan, Kanpur V. Asstt. Commissioner of Income Tax-I, Kanpur

ITA 903/LKW/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 100463 (ITAT-LUCKNOW)
• Duration Of Justice: 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-11-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 20-10-2015
• Assessment Year: 2011-2012
• Appeal Filed On: 19-12-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Charitable institution; Benefit of exemption
• Section: 143(3); 139

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.903/LKW/2014 ASSESSMENT YEAR 2011-12 THE ACIT-1, KANPUR VS ASHOKA FOODS & DEHYDRATES SANSTHAN, 51/92, NAYAGANJ, KANPUR-208 001 PAN AAATA 1998 D (RESPONDENT) (APPELLANT) SHRI RAKESH GARG, ADVOCATE APPELLANT BY SHRI AMIT NIGAM, DR RESPONDENT BY 20 / 10 /2015 DATE OF HEARING 04 / 11 /2015 DATE OF PRONOUNCEMENT O R D E R PER SUNIL KUMAR YADAV, JM. 1. THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A)-II, KANPUR ON THE FOLLOWING GROUNDS: 1. BECAUSE THE QT(A) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ORDER OF THE AO IN WRONGLY INTERPRETING THE PROVISI ONS OF SEE. 10{23B) OF THE INCOME TAX ACT, 1961 THEREBY DENYING THE EXEMPTION TO THE ASSESSEE. 2. BECAUSE THE C1T(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 AIL THE CONDITION NECESSARY FOR CLAIMING EXEMPTION HAVING BEEN FULFILLED AND COMPLIED WITH. 2 3. BECAUSE THE CIT(A) HAS NOT APPRECIATED THE FACTS AND THE AO HAS WRONGLY HELD THAT THE ASSESSEE SOCIETY IS NOT ENGAG ED IN DEVELOPMENT ACTIVITIES OF KVIC. 4. BECAUSE C1T(A) HAS ERRED ON FACTS AND IN LAW IN CONFIRMING THE DETERMINATION OF TOTAL INCOME OF RS.15,36,181/- AND TAX LIABILITIES OF RS,631,330/- WHICH IS CONTRARY TO THE PROVISIONS OF LAW. HENCE THE ORDER PASSED BE QUASHED, 5. BECAUSE IN ANY CASE AND IN ALL CIRCUMSTANCES OF THE CASE, THE ORDER PASSED IS HAD IN LAW AND BE QUASHED. 6. BECAUSE THE CIT(A) HAS FAILED TO APPRECIATE THAT THE ASSESSEE SOCIETY WAS ALREADY ENJOYING EXEMPTION U/S.10(23B) OF THE ACT UPTO ASSIT. YEAR 2007-08 AND ON EXPIRY OF THE PERIO D HAD ALREADY APPLIED FOR RENEWAL ON 14.09.2009 WHICH RENEWAL WAS FORTHCOMING. 7. BECAUSE THE CIT(A) HAS FAILED TO APPRECIATE THAT THERE BEING NO FAILURE ON THE PART OF THE ASSESSEE TO OBTAIN THE R EQUISITE APPROVAL FROM KVIC, AS APPROVED FOR EARLIER YEARS THE THEORY AND PRINCIPLES OF DECLINE OF LEGITIMATE EXPECTATION WOULD BE APPLI CABLE AND THE CLT(A) SHOULD OUGHT TO HAVE ALLOWED THE RELIEF AS C LAIMED BY EXEMPTING THE ENTIRE INCOME US 10(23B) OF THE ACT 1 961. 2. DURING THE COURSE OF HEARING, LD. COUNSEL FOR TH E ASSESSEE HAS INVITED OUR ATTENTION THAT IMPUGNED ISSUES INVOLVED IN THIS APP EAL ARE SQUARELY COVERED BY THE ORDER OF THE TRIBUNAL AGAINST THE ASSESSEE. COP Y OF THE ORDER OF THE TRIBUNAL IS PLACED ON RECORD. LD. DR DID NOT DISPUTE THIS FA CT. 3. HAVING CAREFULLY EXAMINED THE ORDERS OF THE LOWE R AUTHORITIES, WE FIND 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 RELEV ANT 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. THE RELEVANT OBSERVA TIONS OF THE TRIBUNAL ARE REPRODUCED HEREUNDER FOR THE SAKE OF REFERENCE: 8. HAVING HEARD THE RIVAL SUBMISSIONS AND FROM A C AREFUL PERUSAL OF THE RELEVANT PROVISIONS OF THE ACT, WE FIND THAT SE PARATE CLAUSE FOR 3 ASSESSMENT OF THE INSTITUTIONS FALLING UNDER SECTIO N 10(23B) OF THE ACT HAS BEEN PROVIDED IN SECTIONS 139 AND 143 OF THE AC T. AS PER PROVISIONS OF SECTION 10(23B) OF THE ACT, IF THE INSTITUTION E XISTING SOLELY FOR DEVELOPMENT OF KHADI AND VILLAGE INDUSTRIES OR BOTH FULFILS OTHER REQUIRED CONDITIONS PRESCRIBED IN SUB-SECTION (23B) OF SECTION 10 OF THE ACT, ARE ENTITLED FOR EXEMPTION, IF THE INSTITUTION IS APPROVED BY THE PRESCRIBED AUTHORITY. THE APPROVAL ONCE GRANTED CA N BE WITHDRAWN IF THE ACTIVITIES OF THE INSTITUTION ARE FOUND IN CONT RAVENTION TO THE PROVISIONS OF SECTION 10(23B) OF THE ACT. WE HAVE ALSO EXAMINED THE PROVISIONS OF SECTION 143(3) OF THE ACT AND WE FIND THAT IN THE CASE OF AN INSTITUTION REFERRED TO IN CLAUSE (23B) OF SECTION 10 OF THE ACT, WHICH IS REQUIRED TO FURNISH THE RETURN OF INCOME UNDER SUB- SECTION (4C) OF SECTION 139 OF THE ACT, NO ORDER MAKING AN ASSESSME NT OF TOTAL INCOME OR LOSS OF SUCH INSTITUTION SHALL BE MADE BY THE AS SESSING OFFICER WITHOUT GIVING EFFECT OF PROVISIONS OF SECTION 10 OF THE AC T UNLESS THE ASSESSING OFFICER HAS INTIMATED THE CENTRAL GOVERNMENT OR THE PRESCRIBED AUTHORITY THE CONTRAVENTION OF THE PROVISIONS OF CLAUSE (23B) OF SECTION 10 OF THE ACT. IN THIS SUB-SECTION ALSO, A PROVISION IS MADE THAT IF THE ASSESSING OFFICER IS SATISFIED THAT THE ACTIVITIES OF THE INS TITUTION IS NOT BEING CARRIED OUT IN ACCORDANCE WITH ALL OR ANY OF THE CONDITIONS SUBJECT TO WHICH SUCH INSTITUTION WAS APPROVED, HE MAY, AFTER GIVING REAS ONABLE OPPORTUNITY OF SHOWING CAUSE AGAINST THE PROPOSED WITHDRAWAL TO TH E CONCERNED INSTITUTION, RECOMMEND THE CENTRAL GOVERNMENT TO WI THDRAW THE APPROVAL AND THE GOVERNMENT MAY ORDER FOR WITHDRAWA L OF THE APPROVAL AND FORWARD COPY OF THE ORDER TO THE CONCERNED INST ITUTION. MEANING THEREBY, A SPECIFIC PROCEDURE HAS BEEN LAID DOWN FO R FRAMING AN ASSESSMENT IN THE CASE OF AN INSTITUTION REFERRED T O IN CLAUSE 10(23B) OF THE ACT WHILE GRANTING EXEMPTION THEREIN. FOR THE SAKE OF REFERENCE, WE EXTRACT THE RELEVANT PROVISIONS AS UNDER:- SECTION 10(23B): (23B) ANY INCOME OF AN INSTITUTION CONSTITUTED AS A PUBLIC CHARITABLE TRUST OR REGISTERED UNDER THE SOCIETIES REGISTRATIO N 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 O F KHADI OR VILLAGE INDUSTRIES OR BOTH, AND NOT FOR PURPOSES OF PROFIT, TO THE EXTENT SUCH INCOME IS ATTRIBUTABLE TO THE BUSINESS OF PRODUCTIO N, SALE, OR MARKETING, OF KHADI OR PRODUCTS OF VILLAGE INDUSTRIES: PROVIDED THAT -- 4 (I) THE INSTITUTION APPLIES ITS INCOME, OR ACCUMULA TES IT FOR APPLICATION SOLELY FOR THE DEVELOPMENT OF KHADI OR VILLAGE INDU STRIES OR BOTH ; AND (II) THE INSTITUTION IS, FOR THE TIME BEING, APPROV ED FOR THE PURPOSE OF THIS CLAUSE BY THE KHADI AND VILLAGE INDUSTRIES COM MISSION: PROVIDED FURTHER THAT THE COMMISSION SHALL NOT, AT ANY ONE TIME, GRANT SUCH APPROVAL FOR MORE THAN THREE ASSESSMENT YEARS BEGINNING WITH THE ASSESSMENT YEAR NEXT FOLLOWING THE FINANCIAL YEAR I N WHICH IT IS GRANTED: PROVIDED ALSO THAT WHERE THE INSTITUTION HAS BEEN A PPROVED BY THE KHADI AND VILLAGE INDUSTRIES COMMISSION AND SUBSEQU ENTLY THAT COMMISSION IS SATISFIED THAT (I) THE INSTITUTION HAS NOT APPLIED OR ACCUMULATED ITS INCOME IN ACCORDANCE WITH THE PROVISIONS CONTAINED IN THE FIR ST PROVISO ; OR (II) THE ACTIVITIES OF THE INSTITUTION ARE NOT BEIN G CARRIED OUT IN ACCORDANCE WITH ALL OR ANY OF THE CONDITIONS SUBJEC T TO WHICH SUCH INSTITUTION WAS APPROVED, IT MAY, AT ANY TIME AFTER GIVING A REASONABLE OPPOR TUNITY OF SHOWING CAUSE AGAINST THE PROPOSED WITHDRAWAL TO THE CONCER NED INSTITUTION, BY ORDER, WITHDRAW THE APPROVAL AND FORWARD A COPY OF THE ORDER WITHDRAWING THE APPROVAL TO SUCH INSTITUTION AND TO THE ASSESSING OFFICER. EXPLANATION.-- FOR THE PURPOSES OF THIS CLAUSE,-- (I) 'KHADI AND VILLAGE INDUSTRIES COMMISSION' MEANS THE KHADI AND VILLAGE INDUSTRIES COMMISSION ESTABLISHED UNDER THE KHADI AND VILLAGE INDUSTRIES COMMISSION ACT, 1956 (61 OF 1956); (II) 'KHADI' AND 'VILLAGE INDUSTRIES' HAVE THE MEAN INGS RESPECTIVELY ASSIGNED TO THEM IN THAT ACT; SECTION 139(4C): (4C) EVERY (A) RESEARCH ASSOCIATION REFERRED TO IN CLAUSE (21) OF SECTION 10; (B) NEWS AGENCY REFERRED TO IN CLAUSE (22B) OF SECT ION 10 ; 5 (C) ASSOCIATION OR INSTITUTION REFERRED TO IN CLAUS E (23A) OF SECTION 10; (D) INSTITUTION REFERRED TO IN CLAUSE (23B) OF SECT ION 10 ; (E) FUND OR INSTITUTION REFERRED TO IN SUB-CLAUSE ( IV) OR TRUST OR INSTITUTION REFERRED TO IN SUB-CLAUSE (V) OR ANY UN IVERSITY OR OTHER EDUCATIONAL INSTITUTION REFERRED TO IN 10SUB-CLAUS E (IIIAD) OR SUB- CLAUSE (VI) OR ANY HOSPITAL OR OTHER MEDICAL INSTIT UTION REFERRED TO IN 10SUB-CLAUSE (IIIAE) OR SUB-CLAUSE (VIA) OF CLAU SE (23C) OF SECTION 10 ; (F) TRADE UNION REFERRED TO IN SUB-CLAUSE (A) OR AS SOCIATION REFERRED TO IN SUB-CLAUSE (B) OF CLAUSE (24) OF SEC TION 10, (G) BODY OR AUTHORITY OR BOARD OR TRUST OR COMMISSI ON (BY WHATEVER NAME CALLED) REFERRED TO IN CLAUSE (46) OF SECTION 10 ; (H) INFRASTRUCTURE DEBT FUND REFERRED TO IN CLAUSE (47) OF SECTION 10, SHALL, IF THE TOTAL INCOME IN RESPECT OF WHICH SUCH RESEARCH ASSOCIATION, NEWS AGENCY, ASSOCIATION OR INSTITUTION, FUND OR TR UST OR UNIVERSITY OR OTHER EDUCATIONAL INSTITUTION OR ANY HOSPITAL OR OT HER MEDICAL INSTITUTION OR TRADE UNION OR BODY OR AUTHORITY OR BOARD OR TRU ST OR COMMISSION OR INFRASTRUCTURE DEBT FUND IS ASSESSABLE, WITHOUT GIV ING EFFECT TO THE PROVISIONS OF SECTION 10, EXCEEDS THE MAXIMUM AMOUN T WHICH IS NOT CHARGEABLE TO INCOME-TAX, FURNISH A RETURN OF SUCH INCOME OF THE PREVIOUS YEAR IN THE PRESCRIBED FORM AND VERIFIED I N THE PRESCRIBED MANNER AND SETTING FORTH SUCH OTHER PARTICULARS AS MAY BE PRESCRIBED AND ALL THE PROVISIONS OF THIS ACT SHALL, SO FAR AS MAY BE, APPLY AS IF IT WERE A RETURN REQUIRED TO BE FURNISHED UNDER SUB-SE CTION (1). SECTION 143(3): (3) ON THE DAY SPECIFIED IN THE NOTICE,- (I) ISSUED UNDER CLAUSE (I) OF SUB-SECTION (2), OR AS SOON AFTERWARDS AS MAY BE, AFTER HEARING SUCH EVIDENCE A ND AFTER TAKING INTO ACCOUNT SUCH PARTICULARS AS THE ASSESSE E MAY PRODUCE, THE ASSESSING OFFICER SHALL, BY AN ORDER I N WRITING, ALLOW OR REJECT THE CLAIM OR CLAIMS SPECIFIED IN SUCH NOT ICE AND MAKE AN ASSESSMENT DETERMINING THE TOTAL INCOME OR LOSS ACC ORDINGLY, AND 6 DETERMINE THE SUM PAYABLE BY THE ASSESSEE ON THE BA SIS OF SUCH ASSESSMENT ; (II) ISSUED UNDER CLAUSE (II) OF SUB-SECTION (2), O R AS SOON AFTERWARDS AS MAY BE, AFTER HEARING SUCH EVIDENCE A S THE ASSESSEE MAY PRODUCE AND SUCH OTHER EVIDENCE AS THE ASSESSING OFFICER MAY REQUIRE ON SPECIFIED POINTS, AND AFTER TAKING INTO ACCOUNT ALL RELEVANT MATERIAL WHICH HE HAS GATHERED , THE ASSESSING OFFICER SHALL, BY AN ORDER IN WRITING, MA KE AN ASSESSMENT OF THE TOTAL INCOME OR LOSS OF THE ASSES SEE, AND DETERMINE THE SUM PAYABLE BY HIM OR REFUND OF ANY A MOUNT DUE TO HIM ON THE BASIS OF SUCH ASSESSMENT. PROVIDED THAT IN THE CASE OF A- (A) SCIENTIFIC RESEARCH ASSOCIATION REFERRED TO IN CLAUSE (21) OF SECTION 10 ; (B) NEWS AGENCY REFERRED TO IN CLAUSE (22B) OF SECT ION 10 ; (C) ASSOCIATION OR INSTITUTION REFERRED TO IN CLAUS E (23A) OF SECTION 10; (D) INSTITUTION REFERRED TO IN CLAUSE (23B) OF SECT ION 10 ; (E) FUND OR INSTITUTION REFERRED TO IN SUB-CLAUSE ( IV) OR TRUST OR INSTITUTION REFERRED TO IN SUB-CLAUSE (V) OR ANY UN IVERSITY OR OTHER EDUCATIONAL INSTITUTION REFERRED TO IN SUB-CLAUSE ( VI) OR ANY HOSPITAL OR OTHER MEDICAL INSTITUTION REFERRED TO I N SUB-CLAUSE (VIA) OF CLAUSE (23C) OF SECTION 10, WHICH IS REQUIRED TO FURNISH THE RETURN OF INCOME U NDER SUB-SECTION (4C) OF SECTION 139, NO ORDER MAKING AN ASSESSMENT OF THE TOTAL INCOME OR LOSS OF SUCH SCIENTIFIC RESEARCH ASSOCIATION, NE WS AGENCY, ASSOCIATION OR INSTITUTION OR FUND OR TRUST OR UNIVERSITY OR OT HER EDUCATIONAL INSTITUTION OR ANY HOSPITAL OR OTHER MEDICAL INSTIT UTION, SHALL BE MADE BY THE ASSESSING OFFICER, WITHOUT GIVING EFFECT TO THE PROVISIONS OF SECTION 10, UNLESS- (I) THE ASSESSING OFFICER HAS INTIMATED THE CENTRAL GOVERNMENT OR THE PRESCRIBED AUTHORITY THE CONTRAVENTION OF THE PROVI SIONS OF CLAUSE (21) OR CLAUSE (22B) OR CLAUSE (23A) OR CLAUSE (23B) OR SUB-CLAUSE (IV) OR SUB-CLAUSE (V) OR SUB-CLAUSE (VI) OR SUB-CLAUSE (VI A) OF CLAUSE (23C) OF SECTION 10, AS THE CASE MAY BE, BY SUCH SCIENTIFIC RESEARCH ASSOCIATION, 7 NEWS AGENCY, ASSOCIATION OR INSTITUTION OR FUND OR TRUST OR UNIVERSITY OR OTHER EDUCATIONAL INSTITUTION OR ANY HOSPITAL OR OT HER MEDICAL INSTITUTION, WHERE IN HIS VIEW SUCH CONTRAVENTION HAS TAKEN PLAC E ; AND (II) THE APPROVAL GRANTED TO SUCH SCIENTIFIC RESEAR CH ASSOCIATION OR OTHER ASSOCIATION 7OR FUND OR TRUST OR INSTITUTION OR UN IVERSITY OR OTHER EDUCATIONAL INSTITUTION OR HOSPITAL OR OTHER MEDICA L INSTITUTION HAS BEEN WITHDRAWN OR NOTIFICATION ISSUED IN RESPECT OF SUCH NEWS AGENCY OR FUND OR TRUST OR INSTITUTION HAS BEEN RESCINDED. 9. FROM A BARE READING OF THE AFORESAID PROVISIONS OF THE ACT RELATING TO ASSESSMENT OF AN INSTITUTION CONSTITUTE D AS A PUBLIC CHARITABLE TRUST OR REGISTERED UNDER THE SOCIETIES REGISTRATION ACT OR UNDER ANY LAW CORRESPONDING TO THAT ACT ENFORCE AND EXISTS SOLELY FOR DEVELOPMENT OF KHADI OR VILLAGE INDUSTRIES OR BOTH AND NOT FOR THE PURPOSE OF PROFIT, WE FIND THAT SUCH INSTITUTION CA N CLAIM EXEMPTION OF SUCH INCOME ATTRIBUTABLE TO THE BUSINESS OR PRODUCT ION, SALE OR MARKETING OF KHADI OR PRODUCTS OF VILLAGE INDUSTRIE S, IF IT OBTAINS APPROVAL FROM THE KHADI AND VILLAGE INDUSTRIES COMM ISSION. 10. AS PER PROVISO BELOW SUB-SECTION (23B) OF SECTI ON 10 OF THE ACT, THE COMMISSION SHALL NOT GRANT APPROVAL FOR MORE TH AN THREE ASSESSMENT YEARS BEGINNING WITH THE ASSESSMENT YEAR NEXT FOLLOWING THE FINANCIAL YEAR IN WHICH IT IS GRANTED. AS PER THIRD PROVISO, THE APPROVAL ONCE GRANTED CAN ALSO BE WITHDRAWN IF THE COMMISSION IS SATISFIED THAT THE INSTITUTION HAS NOT APPLIED OR A CCUMULATED ITS INCOME IN ACCORDANCE WITH THE PROVISIONS CONTAINED IN THE FIRST PROVISO OR THE ACTIVITIES OF THE INSTITUTION ARE NOT BEING CARRIED OUT IN ACCORDANCE WITH ALL OR ANY OF THE CONDITIONS SUBJECT TO WHICH SUCH INSTITUTION WAS APPROVED, AFTER AFFORDING REASONABLE OPPORTUNITY OF SHOWING CAUSE AGAINST THE PROPOSED WITHDRAWAL TO THE CONCERNED IN STITUTION. THE RETURN FILED BY THE INSTITUTION UNDER SECTION 139(4 C) OF THE ACT IS TO BE PROCESSED UNDER SECTION 143(3) OF THE ACT AND AS PE R FIRST PROVISO TO CLAUSE (D) OF SECTION 143(3), NO ORDER MAKING AN AS SESSMENT TO THE TOTAL INCOME OR LOSS OF SUCH INSTITUTION SHALL BE M ADE BY THE ASSESSING OFFICER WITHOUT GIVING EFFECT TO THE PROVISIONS OF SECTION 10(23B) OF THE ACT. MEANING THEREBY, IF AN ASSESSEE OBTAINS APPRO VAL FROM THE COMMISSION UNDER SECTION 10(23B) OF THE ACT, THE AS SESSING OFFICER SHALL NOT MAKE AN ASSESSMENT OF THE TOTAL INCOME OF THE ASSESSEE WITHOUT GIVING EFFECT TO THE PROVISIONS OF SECTION 10 OF THE ACT. BUT THE BENEFIT OF SECTION 10 OF THE ACT CAN ALSO BE DENIED , IF THE ASSESSING OFFICER HAS NOTED THAT THE SAID INSTITUTION HAS ACT ED IN CONTRAVENTION OF THE PROVISIONS OF CLAUSE (23B) OF SECTION 10 OF THE ACT, BUT BEFORE 8 DENIAL OF EXEMPTION, THE ASSESSING OFFICER IS REQUI RED TO INTIMATE THE CENTRAL GOVERNMENT OR THE PRESCRIBED AUTHORITY ABOU T THE CONTRAVENTION OF PROVISIONS OF CLAUSE (23B) OF SECTION 10 OF THE ACT. THE BENEFIT OF EXEMPTION CAN ALSO BE DENIED BY THE ASSESSING OFFIC ER IF THE APPROVAL GRANTED TO SUCH INSTITUTION HAS BEEN WITHDRAWN OR N OTIFICATION ISSUED IN THIS REGARD HAS BEEN RESCINDED. MEANING THEREBY, D URING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER IS RE QUIRED TO EXAMINE THE ACTIVITIES OF THE ASSESSEE AND TO ASCERTAIN THE FACT WHETHER THE ASSESSEE/INSTITUTION HAS BEEN GRANTED APPROVAL BY T HE PRESCRIBED AUTHORITY FOR THE RELEVANT ASSESSMENT YEAR. 11. HAVING READ THE AFORESAID PROVISIONS OF THE ACT TOGETHER, WE ARE OF THE CONSIDERED VIEW THAT WHILE COMPLETING THE AS SESSMENT OF AN ASSOCIATION OR INSTITUTION REFERRED TO IN CLAUSE (2 3B) OF SECTION 10 OF THE ACT, THE ASSESSING OFFICER IS REQUIRED TO EXAMINE T HE NATURE OF ACTIVITIES OF THE ASSESSEE/INSTITUTION/SOCIETY WHETHER IT WAS IN PURSUANT TO THE OBJECT OF THE INSTITUTION OR ASSOCIATION AS PRESCRI BED UNDER SECTION 10(23B) OF THE ACT AND ALSO AVAILABILITY OF EXEMPTI ON CERTIFICATE FROM THE PRESCRIBED AUTHORITY FOR THE RELEVANT ASSESSMEN T YEAR. IT IS ALSO CLEAR FROM THE PROVISIONS OF SECTION 10(23B) OF THE ACT THAT EXEMPTION CERTIFICATE CANNOT BE GRANTED FOR MORE THAN THREE Y EARS. THEREFORE, FROM TIME TO TIME THE ASSESSEE IS REQUIRED TO OBTAI N EXEMPTION CERTIFICATE FROM THE PRESCRIBED AUTHORITY. IF IT I S NOT OBTAINED FOR A PARTICULAR RELEVANT ASSESSMENT YEAR, THE BENEFIT OF EXEMPTION CANNOT BE GRANTED TO THE ASSESSEE. THE CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE THAT ONCE EXEMPTION CERTIFICATE IS GRANTED , THE BENEFIT OF EXEMPTION CANNOT BE DENIED WITHOUT INTIMATING THE C ENTRAL GOVERNMENT OR THE PRESCRIBED AUTHORITY WITH REGARD TO THE CONT RAVENTION OF THE PROVISIONS OF CLAUSE (23B) OF SECTION 10 OF THE ACT CANNOT BE ACCEPTED, AS THIS CONDITION IS REQUIRED TO BE COMPLIED WITH B Y THE ASSESSING OFFICER WHERE THE ASSESSEE IS HAVING A VALID EXEMPT ION CERTIFICATE FOR A PARTICULAR ASSESSMENT YEAR. IF THE ASSESSEE DOES N OT HAVE EXEMPTION CERTIFICATE FOR A PARTICULAR ASSESSMENT YEAR, THE B ENEFIT OF EXEMPTION FOR THAT YEAR CANNOT BE GRANTED TO THE ASSESSEE. 12. TURNING TO THE FACTS OF THE CASE, IT IS AN ADMI TTED FACT THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE COULD NOT PLACE EXEMPTION CERTIFICATE FOR THE IMPUGNED ASSESSMENT Y EAR. SIMILAR WAS THE POSITION BEFORE THE LD. CIT(A). EVEN BEFORE US , THE ASSESSEE COULD NOT FURNISH EXEMPTION CERTIFICATE FOR THE IMPUGNED ASSESSMENT YEAR DULY GRANTED BY THE PRESCRIBED AUTHORITY. HE HAS S IMPLY PLACED RELIANCE UPON THE EARLIER CERTIFICATE GRANTED FOR ASSESSMENT YEAR 2007-08. HE 9 HAS ALSO PLACED RELIANCE UPON THE RECOMMENDATION OF THE U.P. KHADI AND VILLAGE INDUSTRIES BOARD, PLANNING DIVISION, LU CKNOW VIDE LETTER DATED 16.6.2009 TO THE STATE DIRECTOR, KHADI AND VI LLAGE INDUSTRIES COMMISSION. THIS RECOMMENDATION WAS MADE IN JUNE 2 009 AND TILL DATE EXEMPTION CERTIFICATE HAS NOT BEEN GRANTED TO THE ASSESSEE. THEREFORE, IT CANNOT BE PRESUMED OR ASSUMED THAT ON CE RECOMMENDATIONS ARE MADE, EXEMPTION CERTIFICATE WIL L CERTAINLY BE GRANTED TO THE ASSESSEE. THEREFORE, THE CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE THAT THE ASSESSEE HAS MADE BEST EF FORTS FOR OBTAINING THE EXEMPTION CERTIFICATE AND IN THE LIGHT OF ITS E FFORTS, EXEMPTION MAY BE GRANTED, CANNOT BE ACCEPTED, AS BEFORE ALLOWING EXEMPTION, ASSESSEE MUST HAVE EXEMPTION CERTIFICATE AS PER PRO VISIONS OF SECTION 143(3) OF THE ACT. MOREOVER, THIS EXEMPTION CERTIF ICATE IS TO BE GRANTED FOR A PARTICULAR ASSESSMENT YEAR, THEREFORE, IT CAN NOT BE USED FOR OTHER ASSESSMENT YEAR FOR WHICH IT WAS NOT GRANTED. IN T HE 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 A SSESSEE. WE ACCORDINGLY CONFIRM HIS ORDER. ACCORDINGLY THE ASS ESSEE FAILS. 4. SINCE THE TRIBUNAL HAS TAKEN A PARTICULAR VIEW I N SIMILAR SET OF FACTS, WE FIND NO JUSTIFICATION TO TAKE A CONTRARY VIEW IN TH IS APPEAL. ACCORDINGLY, FOLLOWING THE SAME, WE DECIDE THE ISSUE AGAINST THE ASSESSEE AND CONFIRM THE ORDER OF LD. CIT(A), WHO HAS RIGHTLY DENIED THE BENEFIT OF EXEMP TION U/S 10(23B) OF THE ACT. 5. IN THE RESULT, APPEAL OF THE ASSESSEE STANDS DIS MISSED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/- SD/- (A.K. GARODIA ) (SUNIL KUMA R YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 04 /11/2015 AKS COPY OF THE ORDER FORWARDED TO : 1.THE APPELLANT 2.THE RESPONDENT. 3.CONCERNED CIT 4.THE CIT(A) 5.D.R., I.T.A.T., LUCKNOW ASST T. REGISTRAR