TaxTMI 
TaxTMI 
2011 (3) TMI 1064
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....at the assessee was entitled to exemption under sections 11 & 12 of the Income-tax Act, 1961 despite the fact that it had not disinvested the investment upto 31-3-1993?" 2. This question of law has arisen in the following circumstances: The respondent assessee claims to be a charitable trust. For the assessment year 1992-93, the assessment was completed under section 143(3) of the Income-tax Act (hereinafter referred to as 'the Act') on 6-3-1995 accepting the declared income as 'NIL' giving the benefit to the assessee as charitable under sections 11 and 12 of the Act being trust of charitable character. However, when the Assessing Officer (Assessing Officer) was finalizing the Income-tax return for the assessment year 1997-98, he noti....
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....ssessment of jurisdiction by the Assessing Officer under section 147/148 of the Act questioning the validity of the reassessment proceedings. Order was also challenged on merits. The CIT(A) rejected the contention of the assessee insofar as the validity of proceedings under section 147 of the Act are concerned, but gave relief on merits. Against that order, the Revenue filed the second appeal questioning the order of the CIT(A) on merits. The assessee did not file appeal before the ITAT questioning the order of the CIT(A) upholding the initiation of proceedings under section 147 of the Act nor filed any cross objections in the present proceedings. 4. The appeal of the revenue has been dismissed by the Income-tax Appellate Tribunal (he....
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....aw and the same is hereby directed to be deleted." 6. The Tribunal while affirming the aforesaid view taken by the CIT(A) interpreted the provisions of section 13(1)(d) of the Act in the following manner: "6. Admittedly, the assessee Trust received as donation certain equity shares during the year under consideration. Such investments were continued to be held by the assessee on the close of the previous year relevant to the assessment year under consideration. This investment was indeed contrary to the pattern envisages u/s. 11(5) read with section 13(1)(d) which has been inserted by Finance (No. 2) Act, with retrospective effect from 1-4-1983. In terms of the said proviso, which is applicable for the year under consideration, the as....
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....s per the provisions to section 2(24) of the Act, which reads as under: "Section 2 (24) "income" includes- (i) profits and gains ; (ii) dividend ; (iia) voluntary contributions received by a trust created wholly or partly for charitable or religious purposes or by an institution established wholly or partly for such purposes or by an association or institution referred to in clause (21) or clause (23), or by a fund or trust or institution referred to in sub-clause (iv) or sub-clause (v) or by any university or other educational institution referred to in sub-clause (iiiad) or sub-clause (vi) or by any hospital or other institution referred to in sub-clause (iiiae) or sub-clause (via)] of clause (23C), of section 10 or by an elec....
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.... held by the trust or institution where such assets form part of the corpus of the trust or institution as on the 1st day of June, 1973; (ia) Any accretion to the shares, forming part of the corpus mentioned in clause (i), by way of bonus shares allotted to the trust or institution; (ii) Any assets (being debentures issued by, or on behalf of, any company or corporation) acquired by the trust or institution before the 1st day of March, 1983; (iia) Any asset, not being an investment or deposit in any of the forms or modes specified in sub-section (5) of section 11, where such asset is not held by the trust or institution, otherwise than in any of the forms or modes specified in sub-section (5) of section 11, after the expiry of one ....