[c] Reading file using fscanf() in C

I need to read and print data from a file.
I wrote the program like below,

#include<stdio.h>
#include<conio.h>
int main(void)
{
char item[9], status;

FILE *fp;

if( (fp = fopen("D:\\Sample\\database.txt", "r+")) == NULL)
{
    printf("No such file\n");
    exit(1);
}  

 if (fp == NULL)
{
    printf("Error Reading File\n");
}

while(fscanf(fp,"%s %c",item,&status) == 1)  
{  
       printf("\n%s \t %c", item,status);  
}  
if(feof(fp))  
{            
         puts("EOF");     
}  
else  
{  
 puts("CAN NOT READ");  
}  
getch();  
return 0;  
}  

the database.txt file contains
Test1 A
Test2 B
Test3 C

When I run the code, it prints

CAN NOT READ.

Please help me to find out the problem.

In your code:

while(fscanf(fp,"%s %c",item,&status) == 1)  

why 1 and not 2? The scanf functions return the number of objects read.

scanf() and friends return the number of input items successfully matched. For your code, that would be two or less (in case of less matches than specified). In short, be a little more careful with the manual pages:

#include <stdio.h>
#include <errno.h>
#include <stdbool.h>

int main(void)
{
    char item[9], status;

    FILE *fp;

    if((fp = fopen("D:\\Sample\\database.txt", "r+")) == NULL) {
        printf("No such file\n");
        exit(1);
    }

    while (true) {
        int ret = fscanf(fp, "%s %c", item, &status);
        if(ret == 2)
            printf("\n%s \t %c", item, status);
        else if(errno != 0) {
            perror("scanf:");
            break;
        } else if(ret == EOF) {
            break;
        } else {
            printf("No match.\n");
        }
    }
    printf("\n");
    if(feof(fp)) {
        puts("EOF");
    }
    return 0;
}

fscanf will treat 2 arguments, and thus return 2. Your while statement will be false, hence never displaying what has been read, plus as it has read only 1 line, if is not at EOF, resulting in what you see.