1987 (7) TMI 159

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....nt in shares in V. B. C. Ferro Alloys. The assessee invested Rs. 11,000 in the shares which were purchased out of promoters' quota and not from the issue offered to the public. The Income-tax Officer disallowed the claim on the ground that the company has not come out with any public issue during the year of account. On appeal, the Appellate Assistant Commissioner held that the shares were from th....

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.... quity shares reserved for promoters' quota. In our view the investment in quity shares reserved for promoters' quota would be entitled to deduction under section 80CC. Sub-section (4) (i) of section 80CC reads as under : "80CC (4). The deduction under sub-section (1) shall not be allowed unless the assessee has (i) subscribed to the shares in pursuance of an offer for subscription to the pu....