1997 (4) TMI 19

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....ALASUBRAMANIAN J.---This is a petition filed by the Director of Income-tax (Exemptions), Madras, to direct the Income-tax Appellate Tribunal to state a case and refer the following questions of law under section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for the assessment year 1985-86 : "(1) Whether, on the facts and in the circumstances of the case, the Appella....

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....ts income was exempt from income-tax as the assessee-trust is a charitable trust. The Income-tax Officer restricted the exemption only to a sum of Rs. 43,441 and negatived the claim of the assessee for exemption on the ground that the assessee-trust was holding investments in contravention of the provisions of section 11(5) of the Act and hence the assessee was not entitled to claim exemption in r....

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....ssessee in respect of other investments, the Appellate Tribunal affirmed the factual finding of the Commissioner of Income-tax (Appeals) that they were invested in banks and other approved investments. In this view of the matter, the Tribunal found that there was no violation of the provisions of section 11(5) read with section 13(1)(d) of the Act. The Appellate Tribunal also noticed that the Depa....