TaxTMI 
TaxTMI 
2017 (6) TMI 384
X X X X Extracts X X X X
X X X X Extracts X X X X
....year 2008-09 and the order dated March 30, 2016 of the Commissioner of Income-tax (Appeals)-2, Chennai, in I. T. A. No. 174/CIT(A)-2/2013-14 for the assessment year 2009-10. 2. All the grounds of appeal are related to exemption of income under sections 61 and 161 of the Income-tax Act in the hands of the assessee. The issues raised in these appeals for the assessment years 2008-09 and 2009- 10 and the grounds of appeal for both the assessment years are common. Hence both the appeals are heard together and disposed of in common order for the sake of convenience. 3. The assessee is a trust set up by the Government of Tamilnadu and constituted a trust deed dated November 29, 2006 and filed its return of income under the status of an asso....
X X X X Extracts X X X X
X X X X Extracts X X X X
....iding infrastructure facilities to the State through local bodies. The initial contribution of the Government of Tamil Nadu is only Rs. 5,000, it has invited ICICI, IL&FS, HDFC as contributors to the trust with the condition that after three years if they desire, they can take back their contributions and so that they can contribute their share as well as their expertise also in development of infrastructure in the State through extending financial assistance. The objective was totally in public interest and for the development of the State. Though, they could have been a surplus in the transactions, the motive was to enhance the welfare of the public and not the profit. The assessee was constituted for the purpose of financial infrastructu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing the same income again in the hands of the assessee would amount to double taxation of the same. The learned authorised representative for the assessee also relied on the following decisions : 1. Deputy CIT v. India Advantage Fund-VII [2014] 36 ITR (Trib) 304 (Bang). 2. ITO v. India Advantage Fund-I [2015] 43 CCH 459 (BangTrib.) 3. Jyotendrasinhji v. S. I. Tripathi [1993] 201 ITR 611 (SC). 4. CIT v. T. A. V. Trust [2003] 264 ITR 52 (Ker). 6. The learned authorised representative taken us to the trust deed page Nos. 5, 23, 22, 43 and 78 for referring the meaning of projects, investments, revocable trust, distribution of profits and supplementary deed for grants of Government of Tamil Nadu and explain....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of sections 60, 61 and 62 and of this section,- (a) a transfer shall be deemed to be revocable if- (i) it contains any provision for the re-transfer directly or indirectly of the whole or any part of the income or assets to the transferor, or (ii) it, in any way, gives the transferor a right to reassume power directly or indirectly over the whole or any part of the income or assets ; (b) 'transfer' includes any settlement, trust, covenant, agreement or arrangement." 8. The learned authorised representative for the assessee referring to the paper book page No. 23 clause No. 6.03 to 6.06 of the contribution agreement between the Tamilnadu Urban Infrastructure Ltd. and the Tamilnadu Urban Infrastr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ustee shall endeavour to cancel the unite as soon as possible, but not later than 6 (six) months of receipt of notice." From the clauses of 6.03 to 6.04 referred to above, it is evident that after three years the contributors are free to call upon the trustees to cancel any unit held by them and return whatever remains uncancelled will be cancelled at the trust period and the money is returned to the contributors. 9. The learned authorised representative also taken our attention to the page No. 43 of the paper book wherein the objects of the trust are defined as under : "(i). To give financial assistance to urban local bodies, statutory boards, public sector undertakings and private investors, for setting up infrastructure pr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hatever nature as may be conducive to the objects of the trust. (v) To invest any money of the trust no immediately required, in any investments as may be thought proper and as may be necessary. (vi) To do all other things necessary and conducive to the attainment of all these objects." The objects of the trust clearly indicate the public utility and improvement of infrastructure facilities for the betterment of the urban area and not carried on for the purpose of business. 10. The assessee also invited our attention to page No. 6 of the paper book for the definition of investments which is reproduced hereunder : "'Investments' means monies lent/to be lent by the trust only for infrastructure project....