2024 (2) TMI 165

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....essee is a public charitable trust. It had entered into an agreement in 1994 with one Buildforce Properties Pvt. Ltd. ("Buildforce") to sell a property that it had. Since the Assessee was a trust, it needed permission from the Charity Commissioner before disposing of its property. The Charity Commissioner granted permission vide order dated 29th December 1995 subject to certain conditions. As per the conditions imposed, the Assessee was to complete the sale within one year from the date of the order, the sale consideration of Rs. 6.30 Crores was to be invested in fixed deposits with nationalized bank or scheduled bank or co-operative bank or in any public securities earning higher rate of interest and only the interest was to be utilized fo....

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....ase of Assessee that when the sale proceeds of capital assets are invested in fixed deposit then no capital gain is to be assessed in the hands of Assessee in view of the provisions of Section 11(1A) of the Income Tax Act, 1961 ("the Act"). 3. As per clause (a) of Section 11(1A), where Assessee holds capital asset under trust wholly for charitable or religious purpose and the same is transferred, then where whole or any part of net consideration is utilized for acquiring another capital asset, then the capital gains arising from the transfer shall be deemed to have been applied to charitable or religious purposes depending on whether whole or part of net consideration is so utilized, then so much of capital gains equal to the amount, if an....