2010 (9) TMI 210

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....aw:   "2. (B) Whether under the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the assessee was entitled for exemption under Section 10(23-B) even though one of the following mandatory condition was not fulfilled, i.e. (a) The institution applies its income or accumulates it for application solely for the development of Khadi and Vil....

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....pose of this clause by the Khadi and Village Industries Commission: 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 in which it is granted:   [Provided also that where the institution has been approved by the Khadi and Village Industries Commission ....

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....ished 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.   The aforesaid provision requires in sub-clause (i) of the proviso that the institution applies its income, or accumulates it for application, solely for the development of Khadi or village industries o....

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....sential requirement for claiming the benefit of the provisions of Section 10 (23-B) of the Act.   If any one of the aforesaid condition, as given in (i) and (ii) is found absent, the benefit could not be extended to the assessee. The learned Tribunal solely on the footing that the certificates obtained by the assessee from the K.V.I.C., Bombay, though belated could not have been rejected, ....